The Morton Company processes unprocessed goat milk up to the splitoff 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: 65,000 litres (shrinkage was 10%) Production: condensed goat milk 26,100 litres skim goat milk 32,400 litres Sales: condensed goat milk $3.50 per litre skim goat milk $2.50 per litre The costs of purchasing the 65,000 litres of unprocessed goat milk and processing it up to the splitoff point to yield a total of 58,500 litres of salable product was $72,240. There were no inventory balances of either product. Condensed goat milk may be processed further to yield 19,500 litres (the remainder is shrinkage) of a medi