[rrusche]

Iowa Industries makes corn oil and corn meal from corn in a joint process. The corn oil can be further processed into margarine, and the corn meal can be further processed into corn muffin mix. The joint cost incurred to process the corn to the split off point was $140,000. Information on the quantities, value, and further processing costs for the joint product appears below: CORN OIL-Quantity-800,000 lbs.; Sales value at split off-$0.30/lb.; Estimated further processing cost-$0.15/lb; Sales Value after processing-$0.60/lb; CORN MEAL-Quantity-1,500,000 lbs.; Sales value at split off-$0.15/lb.; Estimated further processing cost-$0.45/lb; Sales Value after processing-$0.55/lb. Assume that the joint cost is allocated to the products based on the sales value at split off each product. How much joint cost should be assigned to the corn oil?