Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process. Additional information follows: Units Sales Value at Product Produced W-10 W-20 W-30 W-40 64, 400 46,000 36, 800 36, 800 184, 000 Product W-10 W-20 W-30 W-40 Split-Off $384,000 330, 000 222,000 168,000 $1,104,000 If Processed Further Additional Costs NRV at Split- Joint Costs Off Allocated $ 41, 400 33, 000 22, 200 13, 800 $110, 400 Required: Assuming that total joint costs of $518,880 were allocated using the sales value at split-off (net realizable value method), what joint costs were allocated to each product? (Do not round intermediate calculations.) Sales Values $ 420,000 384, 000 276,000 184, 000 $1,264,000
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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