A company spends $200,000 and produces 10,000 pounds of product X and 20,000 pounds of product Y. The joint cost will be allocated between these two based on units produced. The company also produced 1,000 pounds of product Z that can be sold for $6 per pound after spending $1 per pound to put into appropriate packages. Product Z is viewed as a by-product and recorded at net realizable value. What portion of the joint cost is allocated to product X?

a.

$64,250

b.

$60,000

c.

$65,000