Dixie Highway Corporation manufactures products J, K, and L in a joint process. The company incurred $570,000 of joint processing costs during the period just ended and had the following data that related to production:

Required:

1. If Dixie Highway allocates joint costs on the basis of the products' sales values at the split-off point, what amount of joint cost would be allocated to product J? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)

2. If production of J totaled 95,000 gallons for the period, determine the relevant cost per gallon that should be used in decisions that explore whether to sell at the split-off point or process further? (Round your answer to 2 decimal places.)

3. At the beginning of the current year, Dixie Highway decided to process all three products beyond the split-off point. If the company desired to maximize income, did it err in regards to its decision with product J? Product K? Product L? By how much? (Negative amount should be indicated by a minus sign.)

Sales Value Product at Split-off $1,003,000 K 800,000 L 1,300,000 Sales values and Additional cost if Processed Beyond Split-off Additional Sales Value cost $1,225,000 $200,000 1,215,000 490,000 308,000 An analysis revealed that all costs incurred after the split-off point are variable and directly traceable to the individual product line. Required: A. If Dixie Highway allocates joint costs on the basis of the products' sales values at the split-off point, what amount of joint cost would be allocated to product J? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Joint cost