Question:
Net Realizable Value Method
Douglas manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process. Additional information follows:
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|
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If Processed Further
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|
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Units
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Sales Value
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Additional
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Sales
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|
Product
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Produced
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at Split-Off
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Costs
|
Values
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W-10
|
35,000
|
$210,000
|
$22,500
|
$270,000
|
|
W-20
|
25,000
|
180,000
|
18,000
|
210,000
|
|
W-30
|
20,000
|
120,000
|
12,000
|
150,000
|
|
W-40
|
20,000
|
90,000
|
7,500
|
90,000
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|
|
100,000
|
$600,000
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$60,000
|
$720,000
|
Required
Assuming that total joint costs of $240,000 were allocated using the sales value at split-off (net realizable value method), what joint costs were allocated to each product?