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)?
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)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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