Sunland produces two joint products, Coconut Milk and Coconut Meat. The company uses the leftover Coconut Skin as a by-product. All three are produced from joint costs of $87500 : direct materials amounting to $53000 and another $34500 for direct labor and manufacturing overhead. Beginning inventory for all three products is zero. Information for production of the product is as follows: How much in joint costs should be allocated to the by-product, using the production method? $0. $2900. $2080. $3818