Homework Help is Here – Start Your Trial Now!
Business
Accounting
Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process. The joint costs incurred are $340,000 for a standard production run that generates 140,000 pints of Smooth Skin and 180,000 pints of Silken Skin. Smooth Skin sells for $3.60 per pint, while Silken Skin sells for $5.30 per pint. Required: 1. Assuming that both products are sold at the split-off point, how much of the joint cost of each production run is allocated to Smooth Skin using the relative sales value method? 2. If no separable costs are incurred after the split-off point, how much of the joint cost of each production run is allocated to Silken Skin using the physical measure method? 3. If separable processing costs beyond the split-off point are $1.00 per pint for Smooth Skin and $1.20 per pint for Silken Skin, how much of the joint cost of each production run is allocated to Silken Skin using a net realizable value method? 4. If separable processing costs beyond the split-off point are $1.00 per pint for Smooth Skin and $1.20 per pint for Silken Skin, how much of the joint cost of each production run is allocated to Smooth Skin using a physical measure method? Note: For all requirements, do not round intermediate calculations. Round final answers to nearest whole dollar amounts. Answer is complete but not entirely correct. Method Cost Allocation 1. Relative sales value method - Smooth Skin $ 117,546 2. Physical measure method - Silken Skin $ 191,250 3. Net realizable value method - Silken Skin $ 227,094 4. Physical measure method - Smooth Skin $ 148,750

Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process. The joint costs incurred are $340,000 for a standard production run that generates 140,000 pints of Smooth Skin and 180,000 pints of Silken Skin. Smooth Skin sells for $3.60 per pint, while Silken Skin sells for $5.30 per pint. Required: 1. Assuming that both products are sold at the split-off point, how much of the joint cost of each production run is allocated to Smooth Skin using the relative sales value method? 2. If no separable costs are incurred after the split-off point, how much of the joint cost of each production run is allocated to Silken Skin using the physical measure method? 3. If separable processing costs beyond the split-off point are $1.00 per pint for Smooth Skin and $1.20 per pint for Silken Skin, how much of the joint cost of each production run is allocated to Silken Skin using a net realizable value method? 4. If separable processing costs beyond the split-off point are $1.00 per pint for Smooth Skin and $1.20 per pint for Silken Skin, how much of the joint cost of each production run is allocated to Smooth Skin using a physical measure method? Note: For all requirements, do not round intermediate calculations. Round final answers to nearest whole dollar amounts. Answer is complete but not entirely correct. Method Cost Allocation 1. Relative sales value method - Smooth Skin $ 117,546 2. Physical measure method - Silken Skin $ 191,250 3. Net realizable value method - Silken Skin $ 227,094 4. Physical measure method - Smooth Skin $ 148,750

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 6BE
See similar textbooks
icon
Related questions
Question
Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process. The joint costs incurred are $340,000 for a standard production run that generates 140,000 pints of Smooth Skin and 180,000 pints of Silken Skin. Smooth Skin sells for $3.60 per pint, while Silken Skin sells for $5.30 per pint. Required: 1. Assuming that both products are sold at the split-off point, how much of the joint cost of each production run is allocated to Smooth Skin using the relative sales value method? 2. If no separable costs are incurred after the split-off point, how much of the joint cost of each production run is allocated to Silken Skin using the physical measure method? 3. If separable processing costs beyond the split-off point are $1.00 per pint for Smooth Skin and $1.20 per pint for Silken Skin, how much of the joint cost of each production run is allocated to Silken Skin using a net realizable value method? 4. If separable processing costs beyond the split-off point are $1.00 per pint for Smooth Skin and $1.20 per pint for Silken Skin, how much of the joint cost of each production run is allocated to Smooth Skin using a physical measure method? Note: For all requirements, do not round intermediate calculations. Round final answers to nearest whole dollar amounts. Answer is complete but not entirely correct. Method Cost Allocation 1. Relative sales value method - Smooth Skin $ 117,546 2. Physical measure method - Silken Skin $ 191,250 3. Net realizable value method - Silken Skin $ 227,094 4. Physical measure method - Smooth Skin $ 148,750
Transcribed Image Text:Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process. The joint costs incurred are $340,000 for a standard production run that generates 140,000 pints of Smooth Skin and 180,000 pints of Silken Skin. Smooth Skin sells for $3.60 per pint, while Silken Skin sells for $5.30 per pint. Required: 1. Assuming that both products are sold at the split-off point, how much of the joint cost of each production run is allocated to Smooth Skin using the relative sales value method? 2. If no separable costs are incurred after the split-off point, how much of the joint cost of each production run is allocated to Silken Skin using the physical measure method? 3. If separable processing costs beyond the split-off point are $1.00 per pint for Smooth Skin and $1.20 per pint for Silken Skin, how much of the joint cost of each production run is allocated to Silken Skin using a net realizable value method? 4. If separable processing costs beyond the split-off point are $1.00 per pint for Smooth Skin and $1.20 per pint for Silken Skin, how much of the joint cost of each production run is allocated to Smooth Skin using a physical measure method? Note: For all requirements, do not round intermediate calculations. Round final answers to nearest whole dollar amounts. Answer is complete but not entirely correct. Method Cost Allocation 1. Relative sales value method - Smooth Skin $ 117,546 2. Physical measure method - Silken Skin $ 191,250 3. Net realizable value method - Silken Skin $ 227,094 4. Physical measure method - Smooth Skin $ 148,750
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
SEE MORE TEXTBOOKS