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

question 187

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 and Product W3's respective production cost per unit, assuming the company allocates joint costs on the basis of net realizable value?

• A)$2.05 and $3.88
• B)$2.42 and $2.78
• C)$2.49 and $2.88
• D)$2.60 and $3.61
• E)$2.86 and $3.68

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Definitions:

Infusion Rate

The speed at which liquids, especially drugs or nutrients, are administered intravenously.

Drug Y

A placeholder name for a hypothetical or unspecified medication used in discussions or examples.

Flow Rate

The volume of fluid that passes a point in a system per unit time, often measured in liters per hour or milliliters per hour in medical contexts.

DE-style Equations

Mathematical formulations used in differential equations, often in the context of dynamic systems or mathematical physics.