Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Approximated net realizable value method and sell or process further Lauren Inc. makes three products that can be sold at split off or processed further

image text in transcribed

Approximated net realizable value method and sell or process further Lauren Inc. makes three products that can be sold at split off or processed further and then suld. The joint cost for April is $1,728,000. Bottles of Sales Price Separate Cost Final Sales Product Output at Split of after Split om Price Perfume 32.000 57.00 $2.50 516.50 Esu de 1.200 5.00 1.50 13.00 Body 4400 5.00 200 The number of ounces in a bottle of each product is perfume, one eau de toilette, two, and body splash, three. Assume that all products are processed further atter split-off, 2. Allocate the joint cost based on the number of bottles, weight and approximated net realizable values at spic-off Note: Round proportions to the nearest whole percentage and dollar amounts to the nearest whole dollar Allocation by bottles Perfume 3 432,000 Eau de Toilette 591,200 Body Splash 504300 Tota $ 1.728.000 Allocation by weight Perfume 207,300 Eu de Toilet 16,640 Morty Splash Allocation by approx NRV Perfume $ 516,200 Eau de Toilette 591,200 Body Splash 315400 Tota 51.225.000 Tela b. Assure that all products are processed further and completed. Althe end of the period, the inventories are as follows: perfume 960 bo.lles eau de toilette, 2,560 boltles, and body splash, 2,688 bolles. Determine the values of the inventories based on answers ublained in (a). Note: Round your final answer to the nearest whole collar. 1. Allocation by bottles Inventory levels Perfume $512,000 Tu de Toilette ORION X y pleh WALI $ 1,974 400 x 2. Allocation by weight Inventory levels Perfume $285.714.29 Eau de Toilet 735 085.71 x Body Splash 953,600 X Total $ 1,974,400 x 3. Allocation by approximated NRV Inventory levels Perfume $ 1241. X Edellele OINA Betty Splash 94418.1 x $ 1,974400 Telal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting Foundations and Evolutions

Authors: Michael R. Kinney, Cecily A. Raiborn

8th Edition

9781439044612, 1439044619, 978-1111626822

More Books

Students also viewed these Accounting questions