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PR 1 9 - 3 B Joint cost allocation Obj. 5 MeKenzie's Soap Sensations, Inc, produces hand soaps with three different scents: morning glory, snowflake

PR 19-3B Joint cost allocation
Obj. 5
MeKenzie's Soap Sensations, Inc, produces hand soaps with three different scents: morning glory, snowflake sparkle, and sea breeze. The soap is produced through a joint production process that costs $30,000 per batch. Exch batch produces 14,800 bottles of morning glory hand soap, 12,000 bottles of snowhake sparkle hand soap, and 10,000 bottles of sea breeze hand soap at the split-of point. Wich product is processed further after the split-off point, but the market value of a botte of any of the flavors at this point is estimated to be $1.25 per botIle. The additional processing costs of moming glory, snowflake sparkle, and sea breeze hand soap are $0.50,$0.55, and $0.60 per boule, respectively Morning glory, snowflake sparkle, and sea breeze hand soap are then sold for 52.00,32.20, and $2,40 per bottle, respectively.
Instructions
Using the net realizable walue method, allocate the join costs of production to each product.
Explain wly MeKenzies Soap Sensations, Inc, always chooses to process each variety of hand soap beyond the split-of point.
If demand tor all products was the same, which product should MeKenrie's Soap Sensations, Ine., pinduce in the highest quantity?
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