Fact Pattern:Pickett Manufacturing uses a joint production process that produces three products at the split-off point. Joint production costs during April were $720,000. Product information for April was as follows:

	Product
	R	S	T
Units produced	2,500	5,000	7,500
Units sold	2,000	6,000	7,000
Sales prices:
At split-off	$100	$80	$20
After further processing	$150	$115	$30
Costs to process after split-off	$150,000	$150,000	$100,000

Question

Assume that Product T is treated as a by-product and that the company accounts for the by-product at net realizable value as a reduction of joint cost. Assume also that Products S and T must be processed further before they can be sold. What is Pickett's total cost of Product R in April if joint cost allocation is based on net realizable values?

A.$220,370

B.$370,370

C.$374,630

D.$595,000