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. Joint Product Bottles per Batch Market Value per Bottle at Split-Off Total Market Value at Split-Off Percent of Total MV at Split-Off Joint Costs Allocation Hand lotion % Body lotion % Foot lotion % Totals 2. Based on the information provided, should Lovely Lotion Inc. continue processing body and foot lotion after the split-off point? Body lotion L 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. Joint Product Bottles per Batch Hand lotion Body lotion Market Value per Bottle at Split-Off Total Market Percent of Value at Split-Off Total MV at Split-Off Joint Costs $ Allocation % % Foot lotion Totals 2. Based on the information provided, should Lovely Lotion Inc. continue processing body and foot lotion after the spit-off point? Body lotion 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. Joint Product Bottles per Batch Market Value per Bottle at Total Market Value at Market Price Split-Off Split-Off per Bottle Added Cost per Bottle NRV per Bottle Hand lotion Body lotion Footlon Total Total Net Realizable Value Greater of Total NRV and Total Market Value at Split-Off Proportion 33330 mod. Round your answers to two decimal places. ket Price er Bottle Greater of Total NRV Added Cost per Bottle NRV per Bottle Total Net Realizable Value and Total Market Value at Split-Off Proportion 96 % Joint Costs Allocation