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Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process. The joint costs incurred are $400,000 for a
Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process. The joint costs incurred are $400,000 for a standard production run that generates 110,000 pints of Smooth Skin and 140,000 pints of Silken Skin. Smooth Skin sells for $2.80 per pint, while Silken Skin sells for $4.00 per pint. Required: 1. 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? 2. If separable processing costs beyond the split-off point are $1.50 per pint for Smooth Skin and $1.00 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? 3. If separable processing costs beyond the split-off point are $1.50 per pint for Smooth Skin and $1.00 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.) 1. Relative sales value method - Smooth Skin 2. Physical measure method - Silken Skin 3. 4. Net realizable value method - Silken Skin Physical measure method-Smooth Skin
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