Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process.
Question:
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 | 56,000 | $ | 336,000 | | $ | 36,000 | | $ | 366,000 | |
W-20 | 40,000 | | 288,000 | | | 28,800 | | | 336,000 | |
W-30 | 32,000 | | 192,000 | | | 19,200 | | | 240,000 | |
W-40 | 32,000 | | 144,000 | | | 12,000 | | | 160,000 | |
| 160,000 | $ | 960,000 | | $ | 96,000 | | $ | 1,102,000 | |
|
Required:
Assuming that total joint costs of $384,000 were allocated using the sales value at split-off (net realizable value method), what joint costs were allocated to each product
Product | NRV at Split-Off | Joint Costs Allocated |
W-10 | | |
W-20 | | |
W-30 | | |
W-40 | | |
Fundamentals of Cost Accounting
ISBN: 978-1259565403
5th edition
Authors: William Lanen, Shannon Anderson, Michael Maher