joint cost allocation for lovely lotion inc

Joint cost allocation Lovely Lotion Inc. produces three different lotions: hand, body, and foot. The lotions are produced jointly in a rixing 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 Total MV at Value at Bottles per Bottle at Allocation Split-Off Split-off Split-Off Joint Costs Joint Product per Batch % 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 Which lotion should be continued after the split-off point? continues after the split-off a. Hand lotion b. Body lotion c. Foot lotion d. Body and foot lotion > Next Check My Work 2:12 SAMSUNG 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 b v 3. Allocate the joint costs of production to each product using the net realizable value method. Round your answers to two decimal places. Greater of Total NRV Market Value Total Market Total Net and Total Bottles per Bottle at Value at Market Price Added Cost NRV Realizable Market Value Joint Product Split-Off per Bottle per Batch Split-Off per Bottle Value per Bottle at Split-Off Hand lotion Body lotion Foot lotion Totals Feedhack Next Check My Work 2:13 SAMSUNG