Trans-Pacific Lumber runs a mill in the Northwest that produces two grades of lumber, A and B, and a by-product, sawdust. The company chooses to allocate the costs on the basis of the physical quantities method.

Last month, it processed 120,000 logs at a total cost of $345,000. The output of the process consisted of 33,500 units of grade A, 50,500 units of grade B, and 14,500 units of sawdust. The sawdust can be sold for $17,400. This is considered to be its net realizable value, which is deducted from the processing costs of the main products.

Required:

What share of the joint costs should be assigned to grade A and grade B? (Do not round intermediate calculations.)

Product	Joint Costs
A
B