Kingston Specialty Corporation manufactures joint products P and Q. During a recent period, joint costs amounted to $80,000 in the production of 20,000 gallons of P and 60,000 gallons of Q. Kingston can sell P and Q at split-off for $2.20 per gallon and $2.60 per gallon, respectively. Alternatively, both products can be processed beyond the split-off point, as follows:

	P			Q
Separable processing costs	$	15,000		$	35,000
Sales price (per gallon) if processed beyond split-off	$	3		$	4

The joint cost allocated to Q under the relative-sales-value method would be:

Multiple Choice

• $40,000.

• $62,400.

• $64,000.

• $65,600.

• None of the answers is correct.