Freshwater, Inc. produces drinking water from saltwater through
a desalination process. Salt, a byproduct of the process, can be
sold. Both products are fully processed at the split-off point.
There are no separable costs. For September, the cost to desalinate
326,000 gallons of seawater was $97,500. Production and sales data
are as follows: Measure Production Sales Sales price Drinking water
Gallons 325,000 300,000 $0.75 225,000 Salt Pounds 10,000 6,500 0.50
3,250 There were no beginning inventories at 9/1.
What is...