Lauren Inc. makes three products that can be sold at split-off or processed further and then sold. The joint cost for April is$2,592,000.Bottles of Sales Price Separate Cost Final SalesOutput at Split-Off after Split-Off Price48,000 $7.00$2.50$16.50Eau de toilette 76,800 5.001.5013.00Body splash 67,200 5.002.0012.00ProductPerfumeThe number of ounces in a bottle of each product is: perfume, one; eau de toilette, two; and body splash, three. Assumethat all products are processed further after split-off.a. Allocate the joint cost based on the number of bottles, weight, and approximated net realizable values at split-off.Note: Round proportions to the nearest whole percentage and dollar amounts to the nearest whole dollar.Allocation by bottlesPerfumeEau de ToiletteBody SplashTotalAllocation by weightPerfumeEau de ToiletteBody SplashTotalAllocation by approx NRVPerfumeEau de ToiletteBody SplashTotalb. Assume that all products are processed further and completed. At the end of the period, the inventories are as follows:perfume, 1440 bottles; eau de toilette, 3,840 bottles; and body splash, 4,032 bottles. Determine the values of theinventories based on answers obtained in (a).Note: Round your final answer to the nearest whole dollar.1. Allocation by bottlesInventory levelsPerfumeEau de ToiletteBody SplashTotal2. Allocation by weightInventory levelsPerfumeEau de ToiletteBody SplashTotal3. Allocation by approximated NRVInventory levelsPerfumeEau de ToiletteBody SplashTotal

Joint cost is the cost which is incurred while producing two or more products from one process. In…

Lauren Inc. makes three products that can be sold at split-off or processed further and then sold. The joint cost for April is $2,592,000. Bottles of Sales Price Separate Cost Final Sales Product Output at Split-Off after Split-Off Price Perfume 48,000 $7.00 $2.50 $16.50 Eau de toilette 76,800 5.00 1.50 13.00 Body splash 67,200 5.00 2.00 12.00 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. a. Allocate the joint cost based on the number of bottles, weight, and approximated net realizable values at split-off. Note: Round proportions to the nearest whole percentage and dollar amounts to the nearest whole dollar.

Lauren Inc. makes three products that can be sold at split-off or processed further and then sold. The joint cost for April is $2,592,000. Bottles of Sales Price Separate Cost Final Sales Product Output at Split-Off after Split-Off Price Perfume 48,000 $7.00 $2.50 $16.50 Eau de toilette 76,800 5.00 1.50 13.00 Body splash 67,200 5.00 2.00 12.00 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. a. Allocate the joint cost based on the number of bottles, weight, and approximated net realizable values at split-off. Note: Round proportions to the nearest whole percentage and dollar amounts to the nearest whole dollar.

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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