The WatsonWatson Company operates a simple chemical process to convert a single material into three separate items, referred to here as X, Y, and Z. All three end products are separated simultaneously at a single splitoff point. Products X and Y are ready for sale immediately upon splitoff without further processing or any additional costs. Product Z, however, is processed further before being sold. There is no available market price for Z at the splitoff point.
The selling prices quoted below have not changed for 3 years, and no changes are foreseen for the coming year. During 2010, the selling prices of the items and the total amounts sold were as follows:

X 120 tons sold for $1,500 per ton
Y 340 tons sold for $1,000 per ton
Z 475 tons sold for $700 per ton

The total joint manufacturing costs for the year were $400,000. An additional $200,000 was spent in order to finish product Z.
There were no beginning inventories of X, Y or Z. At the end of the year, the following inventories of completed units were on hand: X, 180 tons; Y, 60 tons; Z, 25 tons. There was no beginning or ending work in process.
Required:
Allocate joint cost using the estimated NRV method.