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

question 92

Multiple Choice

Use the information below to answer the following question(s) .
Beverage Drink Company processes direct materials up to the split off 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 split off 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 B's estimated sales value at the split off point?

• A) $3,500
• B) $3,750
• C) $4,500
• D) $5,000
• E) $8,250

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Definitions:

Employees' Perceptions

The individual views or beliefs held by employees about various aspects of their workplace, including culture, policies, and management practices.

Leader Reward Behaviour

A leadership approach that involves the use of positive reinforcement to encourage desirable behaviors in followers.

Role Ambiguity

The uncertainty and lack of clarity about what one's role is within an organization, including responsibilities, expectations, and boundaries.

Positive Perceptions

The tendency to view situations, actions, or conditions in a favorable light.