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	61,600	$	368,000		$	39,600		$	402,000
W-20	44,000		316,000			31,600			368,000
W-30	35,200		212,000			21,200			264,000
W-40	35,200		160,000			13,200			176,000
	176,000	$	1,056,000		$	105,600		$	1,210,000

Required:

Assuming that total joint costs of $443,520 were allocated using the physical quantities method, what joint costs were allocated to each product? (Do not round intermediate calculations.)

Answer 1

Grades	Joint costs allocation
W-10	$                           155,232	=443520*(61600/176000)
W-20	$                           110,880	=443520*(44000/176000)
W-30	$                              88,704	=443520*(35200/176000)
W-40	$                              88,704	=443520*(35200/176000)
Total	$                           443,520