Analyzing the impact of different joint costing methods Petro-Edge Corporation manu- factures specialized oils and lubricants for the aviation industry. One product group, manufactured in a joint production process, is the Lub-eez group used for a variety of harsh climate lubrication conditions. During April, the company manufactured 100,000 gallons of Lub-eez-1, 60,000 gallons of Lub-eez-2, and 40,000 gallons of Lub-eez-3. Costs after split-off were $80,000, $90,000, and $160,000, respectively for the three products. Joint costs for the month were $360,000. The selling prices of the three products are $3.00, $5.00, and $9.00 per gallon, respec- tively. On April 1 the company had the following inventory of Lub-eez products:

During April the company sold 110,000 gallons of Lub-eez-1,64,000 gallons of Lub-eez-2, and 36,000 gallons of Lub-eez-3. The company uses a FIFO perpetual inventory system.

Transcribed Image Text:

Product Quantity (gallons) Cost (per gal.) Lub-eez-1 40,000 $2.60 Lub-eez-2 23,000 3.50 Lub-eez-3 8,000 5.50