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.
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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