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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: Production: Condensed goat milk Skim goat milk Sales: Condensed goat milk Skim goat milk 102,000 gallons (after shrinkage) 42,500 gallons 59,500 gallons $4.25 per gallon $3.75 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 $184,480. There were no inventory balances of either product. Condensed goat milk may be processed further to yield 42,000 gallons (the remainder is shrinkage) of a medicinal milk product. Xyla additional processing cost of $5 per usable gallon. Xyla can be sold for $20 per gallon. O A. $637,500 OB. $476,000 O c. $465,600 OD. $630,000 Sales: Skim goat milk Condensed goat milk Skim goat milk 59,500 gallons $4.25 per gallon $3.75 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 $184,480. There were no inventory balances of either product. Condensed goat milk may be processed further to yield 42,000 gallons (the remainder is shrinkage) of a medicinal milk product, Xyla, for an additional processing cost of $5 per usable gallon. Xyla can be sold for $20 per gallon. Skim goat milk can be processed further to yield 58,200 gallons of skim goat ice cream, for an additional processing cost per usable gallon of $5. The product can be sold for $13 per gallon. There are no beginning and ending inventory balances. What is the estimated net realizable value of Xyla at the split - off point? O A $637,500 OB. $476,000 O c. $465,600 OD. $630,000

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