(By-products and cost allocation) Yolanda Salsa has a joint process that yields three grades of tomatoes: premium, good, and fair. Joint cost is allo¬ cated to products based on bushels of output. One particular joint process batch cost $240,000 and yielded the following bushels of output:

The joint process also created by-products that had a total net realizable value of $40,000. The company records by-product inventory at the time of production. Allocate the joint cost to the joint products. LO1.

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Product Output in Bushels Premium 9,600 Good 26,000 Fair 8,400