Refer to the facts in Exercises 11-39 and 11-40.
In Exercise 11-39, Douglas manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process. Additional information follows:

In Exercise 11-40, Assuming that total joint costs of $240,000 were allocated using the physical quantities method, what joint costs were allocated to each product?

Required
Which, if any, of the four products would you recommend Douglas sell at split-off (and not process further)? Explain. Does your answer depend on the method used to allocate the joint cost?Why?

Transcribed Image Text:

If Processed Further Units Sales Value Additional Sales Values at Split-Off $210,000 180,000 120,000 90,000 $600,000 Product Produced 35,000 20,000 100,000 Costs $22,500 18,000 12,000 7500 $60,000 $270,000 210,000 150,000 90,000 $720,000