Refer to following

A lumber mill paid $84,000 for logs that produced 178,660 board feet of lumber in 3 different grades and amounts as follows: Grade Structural No. 1 Common No. 2 Common Production 24,000 board feet 69,560 board feet 85,100 board feet Market Price $1,850/1,000 bd. ft. $1,000/1,000 bd. ft. $ 400/1,000 bd. ft. Compute the portion of the $84,000 joint cost to be allocated to No. 2 Common if the value basis is used