Joint cost allocation Florissa's Flowers jointly produces three varieties of flowers in the same garden: tulips, lilies, and daisies. The flowers are all watered via the same irrigation system and all receive the same amount of water; daisies require three times as much as lilies, and the water required for tulips is about halfway between the amounts needed for daisies and lilies. Although the lilies and tulips receive more water than they need due to the joint irrigation process, they are not hurt by the overwatering. The joint production cost of the three varieties of flowers is about $30 per harvest. Every harvest yields 10 tulips, 20 lilies, and 20 daisies. 1. Allocate the joint costs of production to each product using the physical units method. Joint Product Flowers per Harvest Tulip Lily Daisy Totals Proportion Joint Costs % % % Allocation Which products receive the largest portion of the joint costs? received the largest portion of the joint costs. 2. Allocate the joint costs of production to each product using the weighted average method. Joint Flowers Product peer Harvest Weight Factor Weighted Flowers Weighted Percent Joint of Water of Water Costs Allocation % $ Tulip % Lily % Daisy Totals Which product receives the largest portion of the joint costs? received the largest portion of the joint costs.
Joint cost allocation Florissa's Flowers jointly produces three varieties of flowers in the same garden: tulips, lilies, and daisies. The flowers are all watered via the same irrigation system and all receive the same amount of water; daisies require three times as much as lilies, and the water required for tulips is about halfway between the amounts needed for daisies and lilies. Although the lilies and tulips receive more water than they need due to the joint irrigation process, they are not hurt by the overwatering. The joint production cost of the three varieties of flowers is about $30 per harvest. Every harvest yields 10 tulips, 20 lilies, and 20 daisies. 1. Allocate the joint costs of production to each product using the physical units method. Joint Product Flowers per Harvest Tulip Lily Daisy Totals Proportion Joint Costs % % % Allocation Which products receive the largest portion of the joint costs? received the largest portion of the joint costs. 2. Allocate the joint costs of production to each product using the weighted average method. Joint Flowers Product peer Harvest Weight Factor Weighted Flowers Weighted Percent Joint of Water of Water Costs Allocation % $ Tulip % Lily % Daisy Totals Which product receives the largest portion of the joint costs? received the largest portion of the joint costs.
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 4PA: Joint cost allocation Florissas Flowers jointly produces three varieties of flowers in the same...
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Transcribed Image Text:Joint cost allocation
Florissa's Flowers jointly produces three varieties of flowers in the same garden: tulips, lilies, and daisies. The flowers are all watered via the same irrigation system and all receive the same amount of water; daisies
require three times as much as lilies, and the water required for tulips is about halfway between the amounts needed for daisies and lilies. Although the lilies and tulips receive more water than they need due to the
joint irrigation process, they are not hurt by the overwatering. The joint production cost of the three varieties of flowers is about $30 per harvest. Every harvest yields 10 tulips, 20 lilies, and 20 daisies.
1. Allocate the joint costs of production to each product using the physical units method.
Joint
Product
Flowers
per Harvest
Tulip
Lily
Daisy
Totals
Proportion
Joint
Costs
%
%
%
Allocation
Which products receive the largest portion of the joint costs?
received the largest portion of the joint costs.
2. Allocate the joint costs of production to each product using the weighted average method.
Joint
Flowers
Product peer Harvest
Weight
Factor
Weighted
Flowers
Weighted
Percent
Joint
of Water
of Water
Costs
Allocation
%
$
Tulip
%
Lily
%
Daisy
Totals
Which product receives the largest portion of the joint costs?
received the largest portion of the joint costs.
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