Lauren Inc. makes three products that can be sold at split-off or processed further and then sold. The joint cost for April is $1,080,000. Bottles of Sales Price Separate Cost Final Sales Output at Split-Off after Split-Off Price Product Perfume 20,000 $7.00 $2.50 Eau de toilette 32,000 5.00 1.50 Body splash 28,000 5.00 2.00 The number of ounces in a bottle of each product is: perfume, one; eau de toilette, two; and body splash, three. Assume that all products are processed further after split-off. $16.50 13.00 12.00 a. Allocate the joint cost based on the number of bottles, weight, and approximated net realizable values at split-off.
Lauren Inc. makes three products that can be sold at split-off or processed further and then sold. The joint cost for April is $1,080,000. Bottles of Sales Price Separate Cost Final Sales Output at Split-Off after Split-Off Price Product Perfume 20,000 $7.00 $2.50 Eau de toilette 32,000 5.00 1.50 Body splash 28,000 5.00 2.00 The number of ounces in a bottle of each product is: perfume, one; eau de toilette, two; and body splash, three. Assume that all products are processed further after split-off. $16.50 13.00 12.00 a. Allocate the joint cost based on the number of bottles, weight, and approximated net realizable values at split-off.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 35P: Orman Company produces neon-colored covers for tablets (e.g., iPads). For last year, Orman reported...
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