(By-products and cost allocation) Carlsbad Petroleum has a joint process that yields three products: A, B, and C. The company allocates the joint cost to the products on the basis of pounds of output. A particular joint process run cost $125,000 and yielded the following output by weight:

The run also produced by-products having a total net realizable value of $15,000. The company recognizes by-product inventory at the time of production. Al¬ locate the joint cost to the joint products.LO1

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PRODUCT WEIGHT IN POUNDS A B C 4,800 13,000 4,200