Use the following to answer questions 38-46: Russell Co. produces three products - U, V, and W - from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Last year all three products were processed beyond split-off. Joint production costs for the year were $70,000. Sales values and costs needed to evaluate Russell's production policy follow.
u= Units produced = 7000 sales value at split off = 30,000 Sales Values $ 50,000 Additional Cost $11,000
v = Units produces = 5000 sales value at split off= 50,000 Sales Value $54,000 additional cost $8000
w= Units produces= 3000 sales value at split off = 29,000 Sales Value $ 38,000 additioanl costs $10,000
What is the amount of joint costs allocated to product U using the sales Value at split- off method is calculated to be : ?