Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process. The joint costs incurred are $410,000 for a standard production run that generates 290,000 pints of Smooth Skin and 130,000 pints of Silken Skin. Separable processing costs beyond the split-off point are $1.60 per pint for Smooth Skin and $1.30 per pint for Silken Skin. Required: How much of the joint costs are allocated to Smooth Skin and Silken Skin under each of the following methods: 1. Physical quantity method 2. Sales value at split-off method. Assume the following sales prices at the split-off point: Smooth Skin sells for $2.50 per pint, while Silken Skin sells for $4.00 per pint. 3. Net realizable value method. Assume the following sales prices after further processing: Smooth Skin sells for $2.50 per pint, while Silken Skin sells for $4.00 per pint. (For all requirements, do not round intermediate calculations. Round final answers to nearest whole dollar amounts.) 1. Physical measure method 2. Sales value at split-off method 3. Net realizable value method Smooth Skin Silken Skin 283,095 $ 126,905 238,755 $ 171,245 174,853 $ 235,147 $ $ $

Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process. The joint costs incurred are $410,000 for a standard production run that generates 290,000 pints of Smooth Skin and 130,000 pints of Silken Skin. Separable processing costs beyond the split-off point are $1.60 per pint for Smooth Skin and $1.30 per pint for Silken Skin. Required: How much of the joint costs are allocated to Smooth Skin and Silken Skin under each of the following methods: 1. Physical quantity method 2. Sales value at split-off method. Assume the following sales prices at the split-off point: Smooth Skin sells for $2.50 per pint, while Silken Skin sells for $4.00 per pint. 3. Net realizable value method. Assume the following sales prices after further processing: Smooth Skin sells for $2.50 per pint, while Silken Skin sells for $4.00 per pint. (For all requirements, do not round intermediate calculations. Round final answers to nearest whole dollar amounts.) 1. Physical measure method 2. Sales value at split-off method 3. Net realizable value method Smooth Skin Silken Skin 283,095 $ 126,905 238,755 $ 171,245 174,853 $ 235,147 $ $ $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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