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:

	PRODUCTS
	X			Y			Z				TOTAL
Units produced		32,000			32,000			16,000				80,000
Joint costs		?			?			?			$	322,000
Sales value at split-off	$	480,000		$	240,000		$	16,000			$	736,000

Joint costs were allocated using the net realizable value method at the split-off point. The joint costs allocated to product X were

$136,800.

$240,000.

$120,000.

$204,000.