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The Green Company processes unprocessed goat milk up to the split-off point where two products, condensed goat milk and skim goat milk result. The following

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The Green Company processes unprocessed goat milk up to the split-off point where two products, condensed goat milk and skim goat milk result. The following information was collected for the month of October Direct Materials processed: 102,000 gallons (after shrinkage) Production Condensed goat milk 42.500 gallons Skim goat milk 59.500 gallons Sales: Condensed goat milk $3.25 per gallon Skim goat milk $2.75 per gallon The costs of purchasing the of unprocessed goat milk and processing it up to the split off point to yield a total of 102.000 gallons of saleable product was $188.480. There were no inventory balances of either product. Condensed goat milk may be processed further to yield 42.000 palons (the remainder is shrinkage of a medicinal milk product. xyla, for an additional processing cost of 54 per usable gallon Xyla can be sold for S20 per gallon Skim goat milik can be processed further to yield S8.200 gallons of skim goat ice cream for an additional processing cost per usable gallon of 54. The product can be sold for 512 per gallon. There are no beginning and ending inventory balances. What is the estimated net realizable value of the skim goat ice cream at the sple-off point? 5680.000 5672.000 1476,000 5465.600

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