Purple Paper Company processes wood pulp into two products. During July the joint costs of processing were $50,000. Production and sales value information for the month were as follows:

Sales Value at

Product Kilograms Produced splitoff Point Separable Costs

Paper 125,000 $63,000 $221,000

Cardboard 96,000 46,000 262,000

Paper sells for $2.71 a kilogram and cardboard sells for $3.10 a kilogram.

There were no beginning or ending inventories for July

QUESTION:

Determine the amounts to be allocated to paper using the onstant gross margin percentage of NRV method