Joint cost allocation

Frankie flowers produces three colors of tulips: red, yellow, and white. The tulips are produced jointly in the same garden, and aggregately cost a total of $110 per harvest. One harvest produces 80 red tulips, 70 yellow tulips, and 50 white tulips. Frankie also noted that the white tulips require a fertilizer that is twice as expensive as the fertilizer required by the red and yellow tulips. However, due to the structure of the shared garden space, the more expensive fertilizer is used for all flower types in a joint production process.

1. Using the physical units method, allocate the joint costs of production to each product. Round your answers to two decimal places.

Joint Product	Tulips per Harvest	Proportion	Joint Costs	Allocation
Red tulips		%	$	$
Yellow tulips		%
White tulips		%
Totals				$

2. Using the weighted average method, allocate the joint costs of production to each product. Round your answers to two decimal places.

Joint Product	Tulips per Harvest	Weight Factor	Weighted Tulips of Fertilizer	Weighted Percent of Fertilizer	Joint Costs	Allocation
Red tulips				%	$	$
Yellow tulips				%
White tulips				%
Totals						$

3. Is the cost of the type of fertilizer required by each type of tulip a good weight factor?

The cost of the type of fertilizer required by each type of tulip may be a good weight factor, if fertilizer is cost of the joint production process.