Products M1 and M2 needed further processing with additional costs before they could be marketable. Product M3 was immediately available for sale. The following diagram shows the process.

			M1 Processing cost $120,000, Sales value $300,000
Joint costs $450,000			M2 Processing cost $80,000, Sales value $400,000
			M3 Sales value $500,000

Required:

Allocate the joint costs to the products using the estimated net realizable value method.