COST ACCOUNTING HANDOUT PROBLEM 6 Score Name Section Problem (10 points) Fredericton Company uses a joint process to make two women's cosmetic products: Goodsmell, a women's perfume, and Skinsoft, a women's fragrant skin lotion. The materials must go through a common joint process of mixing and cooking before separable products emerge. At the end of the cooking process, the liquid in the container in which the materials were cooked is the perfume and is removed and bottled immediately with no further processing. The remaining residue must be processed further to obtain a completed product and is mixed with additional ingredients to make the lotion. The following joint costs were incurred in total in order to cook and mix the materials. FREDERICTON COMPANY INFORMATION ABOUT JOINT PRODUCTION COSTS Direct materials $ Direct labor (paid in cash) Manufacturing overhead applied 40,000 12,000 10.000 In addition, the separable costs incurred in order to process the lotion were as follows: direct materials, $2,500 direct labor, S3.400; and manufacturing overhead applied, $5,000. The company had no beginning or ending inventories and allocates its joint costs of production using the net realizable value method with a constant gross margin percentage. The perfume is sold for $20 per ounce and the lotion is sold for $4 per pint. The company produced 100 gallons of perfume and 1,000 gallons of lotion. REQUIRED: Prepare, in proper form, all general journal entries that would be required by the company to record the results of its manufacturing and sales transactions for the accounting period. Include the appropriate allocation of joint manufacturing costs to the products and show the supporting calculations. Provide a brief explanation for the entry made. Round all percentages to three decimal places and all dollar amounts to the nearest whole dollar