Georgia Co. raises peaches that, at harvest, are separated into three grades: premium, good, and fair. Joint cost is allocated to products based on bushels of output. The \(\$ 337,500\) joint cost for one harvest yielded the following output quantities.

The joint process also created a by-product that had a total net realizable value of \(\$ 65,000\). The company records the by-product inventory as a reduction to Work in Process Inventory-Joint Products. Allocate the joint cost to the joint products using bushels of output.

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Product Output in Bushels Premium. Good.... Fair. 16,500 43,560 5,940