Help with questions 1 through 3

7:27 1 v2.cengagenow.com Chapter 19 Joint cost allocation Lovely Lotion Inc. produces three different lotions: hand, body, and foot. The lotions are produced jointly in a mixing process that costs a total of $250 per batch. At the split-off point, one batch produces 80, 40, and 25 bottles of hand, body, and foot lotion, respectively. After the split-off point, hand lotion is sold immediately for $2.50 per bottle. Body lotion is processed further at an additional cost of $0.25 per bottle and then sold for $5.75 per bottle. Foot lotion is processed further at an additional cost of $0.85 per bottle and then sold for $4.00 per bottle. Assume that body and foot lotion could be sold at the split-off point for $3.00 and $3.20 per bottle, respectively. 1. Using the market value at split-off method, allocate the joint costs of production to each product. Round your answers to two decimal places. Market Value Total Market Percent of Bottles per Bottle at Value at Total MV at Joint Product per Batch Split-Off Split-Off Split-Off Joint Costs Allocation Hand lotion % Body lotion Foot lotion Totals 2. A lotion manufacturing company produces three types of lotions. After the split-off point the company continues to sell the body lotion and makes $0.25 profit per bottle. The foot lotion generates $0.05 loss per bottle if it continues after the split-off point. Which lotion should be continued after the split-off point? a. Hand lotion b. Body lotion c. Foot lotion d. Body and foot lotion 3. Allocate the joint costs of production to each product using the net realizable value method. Round your answers to two decimal places. Market Value Total Market Bottles per Bottle at Value at Market Price Added Cost NRV Joint Product per Batch Split-Off Split-Off per Bottle per Bottle per Bottle Hand lotion Body lotion Foot lotion Totals + 2