Company ABC uses a joint production process that produces three products at split-off. The joint production costs during May totaled $340,000. The product data for July were:

Product D Product E Product F

Tons produced 10,000 2,000 5,000

Tons sold 8,000 1,700 4,300

Selling price per ton $50 $125 $10

Company ABC uses net realizable value method for allocating joint costs. We will assume that Product F is treated as a by-product and Product D can be sold at split-off without further processing. Products E & F have to be processed further before they can be sold. The separable cost of processing product E is $30,000 (so it can be sold for $165 per ton). The separable cost of product F is $25,000, and Product F can be sold for $13 per ton after the further processing has been completed. What amount of the joint cost should be allocated to Product E?

A. $120,000

B. $40,000

C. $106,250

D. $112,500