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 W-10 64,400 $ 384,000 Additional Costs $ 41,400 Sales Values $ 420,000 W-20 46,000 330,000 33,000 384,000 W-30 36,800 222,000 22,200 276,000 W-40 36,800 184,000 168,000 $1,104,000 13,800 $110,400 184,000 $1,264,000 Required: Which, if any, of the four products would you recommend Deming & Sons sell at split-off (and not process further)?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process. Additional information
follows:
Product
Units
Produced
Sales Value at
Split-Off
Additional Costs
If Processed Further
Sales Values
W-10
64,400
W-20
46,000
$ 384,000
330,000
$ 41,400
$ 420,000
33,000
384,000
W-30
36,800
222,000
22,200
276,000
W-40
36,800
184,000
168,000
$1,104,000
13,800
$110,400
184,000
$1,264,000
Required:
Which, if any, of the four products would you recommend Deming & Sons sell at split-off (and not process further)?
OW-10
OW-20
O W-30
O W-40
O None of the products
Transcribed Image Text:es Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process. Additional information follows: Product Units Produced Sales Value at Split-Off Additional Costs If Processed Further Sales Values W-10 64,400 W-20 46,000 $ 384,000 330,000 $ 41,400 $ 420,000 33,000 384,000 W-30 36,800 222,000 22,200 276,000 W-40 36,800 184,000 168,000 $1,104,000 13,800 $110,400 184,000 $1,264,000 Required: Which, if any, of the four products would you recommend Deming & Sons sell at split-off (and not process further)? OW-10 OW-20 O W-30 O W-40 O None of the products
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