Business, 10.04.2020 23:57 ronaldotheexplorer12
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
Answers: 2
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