Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process. Additional information follows. Units Product Produced 54,600 39,000 W-10 W-20 W-30 W-40 Product 31, 200 31, 200 156,000 W-10 W-20 W-30 W-40 Sales Value at Split-Off $324,000 279,000 189,000 144,000 $936,000 Required: Assuming that total joint costs of $327,600 were allocated using the physical quantities method, what joint co were allocated to each product? (Do not round intermediate calculations.) Joint Costs Allocated If Processed Further S 114,300 $ 91,800 $ 73,800 $ 73,800 Additional Costs $ 35,000 27,900 18,900 11,700 $ 93,500 Sales Values $ 355,000 324,000 234,000 156,000 $1,069,000

Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process. Additional information follows. Units Product Produced 54,600 39,000 W-10 W-20 W-30 W-40 Product 31, 200 31, 200 156,000 W-10 W-20 W-30 W-40 Sales Value at Split-Off $324,000 279,000 189,000 144,000 $936,000 Required: Assuming that total joint costs of $327,600 were allocated using the physical quantities method, what joint co were allocated to each product? (Do not round intermediate calculations.) Joint Costs Allocated If Processed Further S 114,300 $ 91,800 $ 73,800 $ 73,800 Additional Costs $ 35,000 27,900 18,900 11,700 $ 93,500 Sales Values $ 355,000 324,000 234,000 156,000 $1,069,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Y Company produces two joint products: Sweet and Sour. Joint cost is allocated using the net realizable value method at split-off point. Joint production cost is $70,000. Neither product is salable at split-off point. During May, the additional costs incurred beyond split-off point are as follows: Sweet $ 32,000 Sour $ 48,000 Production: Sweet: 3,200 units Sour: 1,600 units Selling prices: Sweet: $50.00 per unit Sour: $ 90.00 per unit What is the amount of joint cost allocated to Sweet and Sour using the NRV Method at split-off point. (Must show calculations or no credit) Joint cost allocated to Sweet: $_____________________________ Joint cost allocated to Sour:…
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