Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40,

Question

Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process. Additional information follows:

Required:

Assuming that total joint costs of $288,000 were allocated using the physical quantities method, what joint costs were allocated to each product? (Do not round intermediate calculations.)

Product Joint allocated cost

W10 ?

W20 ?

W30 ?

W40 ?

If Processed Further Product Units Produced Sales Value at Split-Off Additional Costs Sales Values W-10 42,000 $ 252,000 $ 26,900 $ 274,000 W-20 30,000 216,000 21,600 252,000 W-30 24,000 144,000 14,400 180,000 W-40 24,000 108,000 9,000 120,000 total 120,000 $ 720,000 $ 71,900 $ 826,000

Explanation / Answer

Product Joint allocated cost W10 100800 =42000/120000*288000 W20 72000 =30000/120000*288000 W30 57600 =24000/120000*288000 W40 57600 =24000/120000*288000

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