Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process. The joint costs incurred are $350,000 for a standard
Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process. The joint costs incurred are $350,000 for a standard production run that generates 160,000 pints of Smooth Skin and 120,000 pints of Silken Skin. Smooth Skin sells for $3.30 per pint, while Silken Skin sells for $4.90 per pint. Required: 1. Assuming that both products are sold at the split-off point, how much of the joint cost of each production run is allocated to Smooth Skin using the relative sales value method? 2. If no separable costs are incurred after the split-off point, how much of the joint cost of each production run is allocated to Silken Skin using the physical measure method? 3. If separable processing costs beyond the split-off point are $1.50 per pint for Smooth Skin and $1.80 per pint for Silken Skin, how much of the joint cost of each production run is allocated to Silken Skin using a net realizable value method? 4. If separable processing costs beyond the split-off point are $1.50 per pint for Smooth Skin and $1.80 per pint for Silken Skin, how much of the joint cost of each production run is allocated to Smooth Skin using a physical measure method? (For all requirements, do not round intermediate calculations. Round final answers to nearest whole dollar amounts.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started