1. 
   
2. 

A firm incurs manufacturing costs totalling $240 000 in process 1 to produce the following three beverages emerging from that process at the split-off point: Apple juice: sold immediately it emerges from Process 1 without further processing for $0.70 litre, Apple cider: processed further in Process 2 at an additional cost of $0.66667 litre, then sold for $1.50 litre, Apple pulp: processed further in Process 3 at an additional cost of $1.50 litre, then sold for $3.50 litre. The following data relates to the period in which the joint costs were incurred. Beverage Apple juice Litres produced Litres sold 150 000 130 000 Apple cider 90 000 60 000 Apple pulp 60 000 300 000 50 000 240 000 What is the amount of joint cost that would be allocated to apple juice if the constant gross margin method had been used?