Lafayette Company manufactures two products out of a joint process: Compod and Ultrasene. The joint costs incurred are $900,000 for a standard production run that generates 135,000 gallons of Compod and 95,000 gallons of Ultrasene. Compod sells for $13.50 per gallon while Ultrasene sells for $13.50 per gallon.

Problem 17-32 Part 1

Required: 1. If there are no additional processing costs incurred after the split-off point, calculate the amount of joint cost of each production run allocated to Compod on a physical-units basis. (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.) What is the joint cost allocated to compod?