Beverage Drink Company Processes Direct Materials Up to the Splitoff

question 5

Multiple Choice

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: The cost of purchasing 2,500 liters of direct materials and processing it up to the splitoff point to yield a total of 2,000 liters 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 liters of Product Z5 for an additional processing cost of $150. Product Z5 is sold for $25.00 per liter. There was no beginning inventory and ending inventory was 125 liters.
Product B may be processed further to yield 375 liters of Product W3 for an additional processing cost of $275. Product W3 is sold for $30.00 per liter. There was no beginning inventory and ending inventory was 25 liters.
If Product Z5 and Product W3 are produced, what are the expected sales values of production, respectively?

• A)$11,250 and $34,375
• B)$22,500 and $ 5,000
• C)$31,250 and $10,500
• D)$34,375 and $11,250

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Definitions:

Proposition

A statement that expresses an idea or assertion which can be evaluated as true or false.

Standard Form

A recognized or typical format for presenting arguments or expressing certain types of information.

Proposition

A statement in logic that expresses a judgment or opinion and can be either true or false.

Disjunctive Proposition

A statement formed by combining two or more propositions with the word "or," indicating that at least one of the propositions is true.