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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
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 sold. The joint cost for April is $2,376,000. Bottles of Sales Price Separate Cost Final Sales Product Output at Split-Off after Split-Off Price Perfume 44,000 $7.00 $2.50 $16.50 Eau de toilette 70,400 5.00 1.50 Body splash 61,600 5.00 2.00 12.00 13.00 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 after split-off. b. Assume that all products are processed further and completed. At the end of the period, the inventories are as follows: perfume, 1320 bottles; eau de toilette, 3,520 bottles; and body splash, 3,696 bottles. Determine the values of the inventories based on answers obtained in (a). Note: Round your final answer to the nearest whole dollar. 1. Allocation by bottles Inventory levels Perfume Eau de Toilette 0 x Body Splash 0 x Total $ $ 0 x 2. Allocation by weight Inventory levels Perfume 0 X Eau de Toilette 0 x Body Splash 0 x Total $ 0 x 3. Allocation by approximated NRV Inventory levels Perfume Ox Eau de Toilette 0 x Body Splash 0 x Total $ 0 x Check
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