(Journal entries) Lady Chic Cosmetics uses a joint process to make two main products: Elegance (a perfume) and Sooosoft (a skin lotion). Two departments, Mixing and Cooking, are used, but the products do not become separable until they have been through the cooking process. After cooking, the perfume is re¬ moved from the vats and bottled without further processing. The residue re¬ maining in the vats is then blended with aloe and lanolin to become the lotion. In the Mixing Department, these costs were incurred during October 1997:

Neither department had beginning Work in Process Inventory balances, and all work started in October was completed in that month. The joint costs are allocated to perfume and lotion on the basis of approximated net realizable values at split-off. For October, the approximated net realizable values at split- off were $158,910 for perfume and $52,970 for lotion.

a. Prepare journal entries for the Mixing and Cooking Departments for Oc¬ tober 1997.

b. Determine the joint cost allocated to, and the total cost of, Elegance and Sooosoft.

c. Diagram the flow of costs for Lady Chic Cosmetics for these two products.LO1

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Direct material Direct labor Manufacturing overhead applied $28,000 7,560 4,250 In the Cooking Department, costs incurred during October 1997, before sepa- ration of the joint products, were Direct material Direct labor Manufacturing overhead applied $6,100 2,150 3,240 In that same month, the Cooking Department incurred separable costs for each of the products as follows: Elegance Perfume (bottles only) $2,120 Sooosoft Lotion: Direct material 1,960 Direct labor 3,120 Manufacturing overhead applied 4,130