The Oxnard Corporation processes a liquid component up to the splitoff point where two products, Mr. DirtOut and Mr. SinkClean, are produced and sold. There was no beginning inventory. The following data was collected for the month of January:

Mr. Dirtout

Mr.Sinkclean

Quantity of production

175,000

gallons

97,000

gallons

Cost of direct materials used in joint production process

$500,000

Cost of conversion in joint production process

$240,000

Oxford Corp. uses physical measure method to allocate the joint costs. Oxford Corporation sells 142,500 gallons of Mr. Dirtout in January.

The cost per gallon of Mr. Dirtout is closest to:

	A.	$4.91
	B.	$3.34
	C.	$0.88
	D.	$2.72
	E.	$1.84