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Homework answers / question archive / Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process

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

Accounting

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 W-10 W-20 W-30 W-40 Units Produced 56,000 40,000 32,000 32.000 160,000 Sales Value at Split-Off $336,000 288,000 192.000 144.000 $960,000 Additional Costs $36,000 28.800 19.200 12.000 $96,000 Sales Values $ 366.000 336,000 240.000 160.000 $ 1,102,000 Required: Assuming that total joint costs of $240,000 were allocated using the physical quantities method, what joint costs were allocated to each product? (Do not round intermediate calculations.) Product Joint Costs Allocated W-10 W-20 W-30 W-40

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Allocation of joint costs using the physical quantities method is as follows:

Product

Working

Joint Costs Allocated
W-10 ($240,000 x 56,000 / 160,000) $84,000
W-20 ($240,000 x 40,000 / 160,000) $60,000
W-30 ($240,000 x 32,000 / 160,000) $48,000
W-20 ($240,000 x 32,000 / 160,000) $48,000