Lauren Inc. makes three products that can be sold at split-off or processed further and then sold. The joint cost for April is $1,080,000.Bottles of Sales Price Separate Cost Final SalesOutput at Split-Off after Split-Off20,000Perfume$7.00$2.50Price$16.5013.00Eau de toilette32,0005.001.50Body splash28,0005.002.0012.00The 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.Producta. Allocate the joint cost based on the number of bottles, weight, and approximated net realizable values at split-off.

Allocation of Joint Cost :There are so many expenses incurred when producing products, general…

Answered: Lauren Inc. makes three products that…

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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