The ABC Company produced three joint products at a joint cost of $106,000. Two of these products were processed further. Production and sales were:

Product Weight Sales Additional Processing Costs

P 303,000 lbs. $ 250,250 $ 203,000

Q 103,000 lbs. 33,000 -0-

R 103,000 lbs. 181,750 103,000

Assume Q is a by-product and the company uses the cost reduction method of accounting for by-product cost. If estimated net realizable value is used, how much of the joint costs would be allocated to product R?

Question 4 options:

$40,556.

$66,250.

$45,625.

$53,000.