Beverage Drink Company Processes Direct Materials Up to the Split-Off

Multiple Choice

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:

The cost of purchasing 3000 liters of direct materials and processing it up to the split-off point to yield a total of 2550 liters of good products was $7500. There were no inventory balances of A and B.
Product A may be processed further to yield 500 liters of Product Z5 for an additional processing cost of $170. Product Z5 is sold for $25 per liter. There was no beginning inventory and ending inventory was 125 liters.
Product B may be processed further to yield 1875 liters of Product W3 for an additional processing cost of $325. Product W3 is sold for $35 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) $65,625 and $12,500
B) $21,000 and $58,500
C) $17,500 and $46,875
D) $12,500 and $65,625