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Now let's assume that Sunny Morning Soap Company can sell the regular soap at the split-off point, but the extra-moisturizing soap must be processed further

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Now let's assume that Sunny Morning Soap Company can sell the regular soap at the split-off point, but the extra-moisturizing soap must be processed further before being sold. Regular soap sells for $0.75 per bar at the split-off point . Although the extra-moisturizing soap requires additional processing to be sold, Sunny Morning's management estimates a market value of $1.25 per bar at the split-off point. c) Calculate the joint production cost to be allocated to bars of soap using the market value at split off method. *Round to the nearest whole percent if necessary. selling Harket % sul-off SOP) 0-70% Regulas 8000 0.75 86000 soap 5000 0.29% 14.5 2060 meishings 13500 Stay 645 Allocation Joint cost at Per vako 5000 50 09% 2560 Extra 1.25 But the Controller came to us and asked about the additional costs for processing further. We know the following (note: a batch is the full 8,000 and 2,000 bars of soap as shown above). Joint cat 15000 Selling Price at Additional Selling Price After Split-Off Point Processing Costs Further Processing Regular soap $0.75 $2,500 per batch $1.50 Extra-moisturizing soap 1.25 $3,000 per batch 2.00 d) Calculate the joint production cost to be allocated to bars of soap using the net realizable value method. *Round to the nearest whole percent if necessary. wo

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