Troy Company uses 15,000 litres of direct materials input to produce two products, Product X and Product Y. Product X is the byproduct and Product Y is the main product. Product X sells for $4 per litre and Product Y 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 totalled $15,000. QUESTION: How much is the ending inventory reduction for the byproduct if byproducts are recognized in the general ledger at the point of sale?

	A)	$1,500
	B)	$563
	C)	$0
	D)	$17,500
	E)	$16,000