Question
Nathalie Company processes a fluid component up to the split off point where two products, Liquid soap and Conditioner , are produced. The following data
Nathalie Company processes a fluid component up to the split off point where two products, Liquid soap and Conditioner , are produced. The following data was collected for them on 28 th of Febuary.
Sales: Liquid soap 140,500 at $110 per liter Conditioner 91,000at $100 per liter
Direct materials processed: 250,000 liters (242,500 liters of good product)
Production: Liquid soap 147,500 liters
Conditioner 95,000 liters
The cost of purchasing 250,000 liters of direct materials and processing it up to the split off point to yield a total of 242,500 liters of good product was $380,000.
There was no beginning inventory. What are the physical-volume proportions to allocate joint costs for Liquid soap and Conditioner, respectively?
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