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Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process. Additional information follows. If Processed Further Product Units
Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process. Additional information follows.
If Processed Further | ||||||||||
Product | Units Produced | Sales Value at Split-Off | Additional Costs | Sales Values | ||||||
W-10 | 43,400 | $ | 260,000 | $ | 27,800 | $ | 283,000 | |||
W-20 | 31,000 | 223,000 | 22,300 | 260,000 | ||||||
W-30 | 24,800 | 149,000 | 14,900 | 186,000 | ||||||
W-40 | 24,800 | 112,000 | 9,300 | 124,000 | ||||||
124,000 | $ | 744,000 | $ | 74,300 | $ | 853,000 | ||||
Required:
Assuming that total joint costs of $297,600 were allocated using the physical quantities method, what joint costs were allocated to each product
Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process. Additional information follows. If Processed Further Product W-10 W-20 W-30 W-40 Units Sales Value Produced at Split-Off 43,400 $260,000 31,000 223,000 24,800 149,000 24,800 112,000 124,000 $744,000 Additional costs $27,800 22,300 14,900 9,300 $74,300 Sales Values $283,000 260,000 186,000 124,000 $853,000 Required: Assuming that total joint costs of $297,600 were allocated using the physical quantities method, what joint costs were allocated to each product? (Do not round intermediate calculations.) Product Joint Costs Allocated W-10 W-20 W-30 W-40Step by Step Solution
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