Cola 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:		3500	liters (with 20% shrinkage)
Production:	A	2100	liters
	B	700	liters
Sales:	A	$15.00	per liter
	B	$10.00	per liter

The cost of purchasing 3500 liters of direct materials and processing it up to the split-off point to yield a total of 2800 liters of good products was $4500. There were no inventory balances of A and B. Product A may be processed further to yield 2000 liters of Product Z5 for an additional processing cost of $190. Product Z5 is sold for $70.00 per liter. There was no beginning inventory and ending inventory was 125 liters. Product B may be processed further to yield 575 liters of Product W3 for an additional processing cost of $325. Product W3 is sold for $75 per liter. There was no beginning inventory and ending inventory was 25 liters. What is Product Z5's estimated net realizable value at the split-off point?

• A. $42,935
• B. $31,310
• C. $139,810
• D. $140,000