Laredo manufactures Nuts and Bolts from a joint process (cost = $85,000). 6,000 pounds of Nuts can be sold at split-off for $15 per pound; 15,000 pounds of Bolts can be sold at split-off for $10 per pound. For product costing purposes Laredo allocates joint costs using the relative sales value method. The amount of joint cost allocated to Nuts would be:

The amount of joint cost allocated to Nuts would be:

$53,125.

$39,000.

$34,000.

$85,000.

$31,875.