Baker Company produces three products: A, B, and C from the same process. Joint costs for this production run are $2,100.

	Pounds	Sales price per lb. at split-off	Disposal cost per lb. at split-off	Further processing per pound	Final sales price per pound
A	800	$6.50	$3.00	$2.00	$ 7.50
B	1,100	8.25	4.20	3.00	10.00
C	1,500	8.00	4.00	3.50	10.50

If the products are processed further, Baker Company will incur the following disposal costs upon sale: A, $3.00; B, $2.00; and C, $1.00.

a. Using sales value at split-off, what amount of joint processing cost is allocated to Product C (round to the nearest dollar)?

$959

$725

$700

$416

b. Using net realizable value at split-off, what amount of joint processing cost is allocated to Product C (round to the nearest dollar)?

$706

$951

$444

$700