Joint cost allocation Florissa's Flowers Jointly produces three varieties of flowers in the same garden: tulips, lilies, and daisies. The flowers are all watered via the sam irrigation system and all receive the same amount of water; daisies require three times as much as lilies, and the water required for tulips is abou halfway between the amounts needed for daisies and filles. Although the lilies and tulips receive more water than they need due to the joint irriga process, they are not hurt by the overwatering. The joint production cost of the three varieties of flowers is about $30 per harvest. Every harvest yields 10 tulips, 20 lilies, and 20 daisies. 1. Allocate the joint costs of production to each product using the physical units method. Joint Flowers Joint Product per Harvest Proportion Allocation Tulip Lily Costs % $ % Daisy % Totals Which products receive the largest portion of the Joint costs? received the largest portion of the Joint costs of the joint costs. 2. Allocate the joint costs of production to each product using the weighted average method. Weighted Weighted Joint Flowers Weight Flowers Percent Joint Product per Harvest Factor of Water of Water Costs Tulip $ Allocation Lily Daisy Totals % % which product receives the largest portion of the joint costs? received the largest portion of the Joint costs. 3. Why would it be important to consider the watering process as an appropriate weight factor? a. The cost of watering the plants is a large portion of the Joint costs and the company follows the same irrigation system for all three varieties of flowers b. It is a natural resource which is more precious c. Dalsies have the highest market value d. None of the above