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A company produces two products that incur $50,000 of joint costs. At the split-off point, 5,000 units of Product 1 and 15,000 units of Product
A company produces two products that incur $50,000 of joint costs. At the split-off point, 5,000 units of Product 1 and 15,000 units of Product 2 can be sold for $5 and $3 per unit, respectively. These products are processed further. Product 1 incurs $25,000 of separable costs and is then sold for $12 per unit, and Product 2's separable costs total $30,000 with a final selling price of $6 per unit. If the company uses the constant gross profit method to allocate joint costs, the dollar amount of joint costs allocated to Product 1 would be?
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