General Chemical Company (GCC) manufactures two products as part of a joint process: A1 and B1. Joint costs up to the split-off point total $25,000. The joint costs are allocated to A1 and B1 in proportion to their relative sales values. At the split-off point, product A1 can be sold for $44,400, whereas product B1 can be sold for $66,600. Product A1 can be processed further to make product A2, at an incremental cost of $41,000. A2 can be sold for $88,000. Product B1 can be processed further to make product B2, at an incremental cost of $51,000. B2 can be sold for $98,000.

Joint costs allocated to product A1 total: