Corey Corporation manufactures joint products W and X. During a recent period, joint costs amounted to $300,000 in the production of 20,000 gallons of W and 60,000 gallons of X. Both products will be processed beyond the split-off point, giving rise to the following data:
|Separable processing costs||$||40,000||$||160,000|
|Sales price (per gallon) if processed beyond split-off||$||14||$||12|
The joint cost allocated to X under the net-realizable-value method would be:
E. None of the answers is correct.