Braun Company produces two chemical compounds, Herzog and Lomax from a joint process. Joint costs to produce 500 gallons of Herzog and 300 gallons of Lomax were $80,000. A by-product, Horst, results from the joint process and has a market value of $1,000. Assuming Braun accounts for the by-product as a reduction in the costs assigned to the products, what are the joint costs assigned to Herzog?