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Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a...

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Question

Accounting

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 Additional Costs Sales Values
W-10 64,400 $ 384,000 $ 41,400 $ 420,000
W-20 46,000 330,000 33,000 384,000
W-30 36,800 222,000 22,200 276,000
W-40 36,800 168,000 13,800 184,000
184,000 $ 1,104,000 $ 110,400 $ 1,264,000

Required:

Which, if any, of the four products would you recommend Deming & Sons sell at split-off (and not process further)?

  • W-10

  • W-20

  • W-30

  • W-40

  • None of the products

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