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[The following information applies to the questions displayed below.] The following information relates to a joint production process for three products, with a total joint

[The following information applies to the questions displayed below.]

The following information relates to a joint production process for three products, with a total joint production cost of $125,000. There are no separable processing costs for any of the three products.

Product Sales Value at Split-Off Units at Split-Off
1 $ 150,000 360
2 62,500 840
3 37,500 1,200
$ 250,000 2,400

Assume that the total sales value at the split-off point for product 1 is $62,500 instead of $150,000 and the sales value of product 3 is $2,500 instead of $37,500. Assume also that, because of its relatively low sales value, the firm treats product 3 as a by-product and uses the asset recognition method for accounting for by-products. What amount of joint cost would be allocated to the products using the sales value at split-off method?

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