Business, 02.08.2019 18:20 tracitalbot

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 liters (with 20% shrinkage) production: a 1,500 liters b 500 liters sales: a $15.00 per liter b $10.00 per liter 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?

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Beverage drink company processes direct materials up to the splitoff point where two products, a and...

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