What amount of joint cost would be allocated to the products using the sales value at split-off method?
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The following information relates to a joint production process for three products, with a total joint production cost of $120,000. There are no separable
| Product | Sales Value at Split-Off | Units at Split-Off |
| 1 | $180,000 | 170 |
| 2 | $36,000 | 510 |
| 3 | $24,000 | 1,020 |
| $240,000 | 1,700 | |
Assume that the total sales value at the split-off point for product 1 is $84,000 instead of $180,000 and the sales value of product 3 is $2,400 instead of $24,000. 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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