Natural Beauty Corp. uses a joint process to make two main products: Forever perfume and Fantasy lotion. Production is organized in two sequential departments: Combining and Heating. The products do not become separate until they have been through the heating process. After heating, the perfume is removed from the vats and bottled without further processing. The residue remaining in the vats is then blended with aloe and lanolin to become the lotion. The following costs were incurred in the Combining Department during October 2013: direct material, $42,000; direct labor, $11,340; and applied manufacturing overhead, $6,375. Prior to separation of the joint products, October costs in the Heating Department were direct material, $9,150; direct labor, $3,225; and applied manufacturing overhead, $4,860. After split-off, the Heating Department incurred separate costs for each product line as follows: bottles in which to package the Forever perfume, $3,180; and direct material, direct labor, and applied manufacturing overhead of $2,940, $4,680, and $6,195, respectively, for Fantasy lotion. Neither department had beginning Work in Process Inventory balances, and all work that started in October was completed in that month. Joint costs are allocated to perfume and lotion using approximated net realizable values at split-off. For October, the approximated net realizable values at split-off were $238,365 for perfume and $79,455 for lotion. a. Determine the joint cost allocated to, and the total cost of, Forever perfume and Fantasy lotion. b. Prepare journal entries for the Combining and Heating Departments for October 2013 c. Post the entries to the accounts.

excel