Joint Product Cost Allocation—Market Value Method. The Escambia Company produces three products, E, S, and C, as the result of joint processing, which costs $150,000. LO5 E S C Unitsproduced. 30,000 15,000 13,000 Separable processingcosts. $30,000 $24,000 $27,000 Unit salesprice. $ 4.30 $ 6.60 $ 6.00 Required:

(1) Allocate the joint cost to the three products using the market value method.

(2) Suppose that product S could be sold at the split-off point for $5.25. Would that be a good idea? Show calculations.