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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If Processed Further |
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Units |
Sales Value |
Additional |
Sales |
|
Product |
Produced |
at Split Off |
Costs |
Values |
|
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 |
|
|
100,000 |
$600,000 |
$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?