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Assume that Sunny Morning Soap Company produces two types of bar soap from a joint production process: regular and extra-moisturizing. The joint costs per batch
Assume that Sunny Morning Soap Company produces two types of bar soap from a joint production process: regular and extra-moisturizing. The joint costs per batch total $4,000. Assume that at the split-off point, there are the following quantities of products:
Regular soap 6,000 bars
Extra-moisturizing soap 4,000 bars
Total 10,000 bars
Using the physical units method, the total joint costs of $4,000 are allocated using the number of bars of soap at the split-off point. What are the joint cost allocations for each type of soap?
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