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Douglas 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
Douglas 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 | 35,000 | $ | 210,000 | $ | 22,500 | $ | 270,000 | |||
W-20 | 25,000 | 180,000 | 18,000 | 210,000 | ||||||
W-30 | 20,000 | 120,000 | 12,000 | 150,000 | ||||||
W-40 | 20,000 | 90,000 | 7,500 | 90,000 | ||||||
100,000 | $ | 600,000 | $ | 60,000 | $ | 720,000 | ||||
Required: |
Assuming that total joint costs of $240,000 were allocated using the physical quantities method, what joint costs were allocated to each product? (Do not round your intermediate calculations.) |
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