Lexington Lumber Co. processes rough timber to obtain three grades of finished lumber, A, B, and C. The company allocates costs to the joint products on the basis of market value. During the month of May, Lexington incurred total production costs of $300,000 in producing the following:

Make the journal entry to transfer the finished lumber to separate inventory accounts for eachproduct.

Thousand Board Feet 200 300 500 Selling Price per 1,000 Board Feet $200 100 150 Grade