Use the Information Below to Answer the Following Question(s)

question 71

Multiple Choice

Use the information below to answer the following question(s) .Beverage Drink Company processes direct materials up to the splitoff point, where two products, A and B, are obtained.The following information was collected for the month of July:
Direct materials processed: 2,500 litres (with 20 percent shrinkage)
Cost of purchasing 2,500 litres of direct materials and processing it up to the splitoff point to yield a total of 2,000 litres of good products was $4,500.There were no inventory balances of A and B.Product A may be processed further to yield 1,375 litres of Product Z5 for an additional processing cost of $150.Product Z5 is sold for $25.00 per litre.There was no beginning inventory and ending inventory was 125 litres.Product B may be processed further to yield 375 litres of Product W3 for an additional processing cost of $275.Product W3 is sold for $30.00 per litre.There was no beginning inventory and ending inventory was 25 litres.
-What is Product Z5's estimated net realizable value?

• A)$11,100
• B)$22,350
• C)$34,225
• D)$34,375
• E)$34,525

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Definitions:

Expected Value

The average outcome of a random event when considering all possible outcomes and their probabilities.

Probabilities

Measures of the likelihood or chance that a particular event will occur, expressed as a number between 0 (impossible) and 1 (certain).

Voice-Activated

Describes technology that allows devices to be controlled or operated through voice commands, typically involving a virtual assistant.

Expected Revenue

The anticipated amount of money a company expects to receive from its activities over a period, based on forecasted sales volumes and selling prices.