Troy 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.

No processing Processing

The manufacturing costs totalled $$95,000.$Troy 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.

The manufacturing costs totalled $$95,000.$

What is the net effect to the income statement for the sale of byproduct, if byproducts are recognized at the point

of sale?

A$.$ $$16,000$

B$.$ $$20,000$

C$.$ $$0$

D$.$ $$1,500$

E$.$ $$17,500$

What is the net effect to the income statement for the sale of byproduct, if byproducts are recognized at the point

of sale?

A$.$ $$16,000$

B$.$ $$20,000$

C$.$ $$0$

D$.$ $$1,500$

E$.$ $$17,500$