Lavéra processes an ore from which a single process simultaneously extracts two joint products, Alpha and Beta; the costs of conversion of each product are not separately identifiable. The joint costs up to the split-off point amount to 600,000. At the split-off point, Lavéra obtains 4,000 tonnes of Alpha, saleable at 150 per tonne, and 6,000 tonnes of Beta, saleable at 50 per tonne. Its accounting policy, applied consistently, allocates the joint costs on the basis of the relative sales value at the split-off point. What cost is allocated to the Alpha inventory?
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