Bonanza Co Joint Costs Were Allocated Using the Net Realizable Value Method

Multiple Choice

Bonanza Co. manufactures products X and Y from a joint process that also yields a by-product, Z. Revenue from sales of Z is treated as a reduction of joint costs. Additional information is as follows: $\begin{array}{lrrrr}&&\text { PRODUCTS }\\&\mathrm{X} & \mathrm{Y} & \mathrm{Z} & \text { TOTAL }\\\text { Units produced } & 20,000 & 20,000 & 10,000 & 50,000 \\\text { Joint costs } & ? & ? & ? & \$ 262,000 \\\text { Sales value at split-off } & \$ 300,000 & \$ 150,000 & \$ 10,000 & \$ 460,000\end{array}$ Joint costs were allocated using the net realizable value method at the split-off point. The joint costs allocated to product X were

A) $75,000.
B) $100,800.
C) $150,000.
D) $168,000.