Use the information below to answer the following question$($s$).$

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: $2,500$ litres $($with $20$ percent shrinkage$)$

Production:A$1,500$ litres$$B$500$ litres$$Unit sales value at splitoff:A$$15\mathrm{.}00$ per litre$$B$$10\mathrm{.}00$ per litre

Cost of purchasing $2,500$ litres of direct materials and processing it up to the splitoff 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 Z$5$ for an additional processing cost of $$150.$ Product Z$5$ is sold for $$25\mathrm{.}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 W$3$ for an additional processing cost of $$275.$ Product W$3$ is sold for $$30\mathrm{.}00$ per litre. There was no beginning inventory and ending inventory was $25$ litres.

What is Product Z$5\text{'}$s and Product W$3\text{'}$s respective production cost per unit, assuming the company allocates joint costs on the basis of net realizable value?

Question $23$Answer

a$.$

$$2\mathrm{.}42$ and $$2\mathrm{.}78$

b$.$

$$2\mathrm{.}49$ and $$2\mathrm{.}88$

c$.$

$$2\mathrm{.}86$ and $$3\mathrm{.}68$

d$.$

$$2\mathrm{.}60$ and $$3\mathrm{.}61$

e$.$

$$2\mathrm{.}05$ and $$3\mathrm{.}88$