Tree Company processes 15,000 litres of direct materials to produce two products, Product X and Product Y. Product X, a byproduct, sells for $4 per litre, and Product Y, the main product, sells for $50 per litre. The following information is for August:

	Production	Sales	Beginning Inventory	Ending Inventory
Product X:	4,375	4,000	0	375
Product Y:	10,000	9,625	125	500

The manufacturing costs totaled $95,000.

How much is the ending inventory reduction for the byproduct if byproducts are recognized in the general ledger at the point of sale?

a)$563 b)1500 c)17500 d)16000 e)0