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 $327,600 were allocated using the physical quantities method, what joint costs were allocated to each product? (Do not round intermediate calculations.)

If Processed Further Product Units Produced Sales Value at Split-Off Additional Costs Sales Values W-10 54,600 $ 324,000 $ 35,000 $ 355,000 W-20 39,000 279,000 27,900 324,000 W-30 31,200 189,000 18,900 234,000 W-40 31,200 144,000 11,700 156,000 156,000 $ 936,000 $ 93,500 $ 1,069,000

Explanation / Answer

Assuming that total joint costs of $327,600 were allocated using the physical quantities method, what joint costs were allocated to each product?

Product Joint Costs Allocated W-10 (327600*54600/156000) 114660 W-20 (327600*39000/156000) 81900 W-30 (327600*31200/156000) 65520 W-40 (327600*31200/156000) 65520 Total 327600

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