Scotland Beauty Products manufactures face cream, body lotion, and liquid soap in a joint manufacturing process. At the split-off point, the company has 300 pounds of face cream with a market value of $15 per pound, 200 pounds of body lotion with a market value of $13 per pound, and 300 pounds of liquid soap with a market value of $7 per pound and has incurred $200,000 in joint costs. Round percentages in intermediate steps to the nearest whole percentage. Using the market value at split-off method, allocate the joint costs to: a. Face Cream b. Body Lotion E. Liquid Soap

Q: How do you calculate contribution margin?

A: The contribution margin can be calculated by deducting the variable cost from the sales revenue.

Q: What is Unit-Profit or Unit-Cost Calculation?

A: Cost:   It is the economic value of resources incurred by a firm to manufacture a product or render…

Q: Are joint cost allocations useful? If they are, for what purpose?

A: Definition: Joint cost: The total costs incurred prior to the split-off point where the joint…

Q: ost flow methods and assumptions. What

A: The different cost flow methods and assumptions are as follows: FIFO LIFO Weighted average

Q: what is an indirect cost and how is it different than a direct cost?

A: Indirect Cost: Indirect costs are the costs of doing business that are not easily identified with a…

Q: Imagine: this is the factory for making bicycles |||| Assume monthly rent is $100,000 How much will…

A: Fixed costs: Fixed costs are those costs which do not change according to the level of activity. It…

Q: Year 2012 2013 2014 2015 60,000 15,000 45,000 6,000 90,000 17,000 67,500 8,500 30,000 7,500 22,500…

A: For every labor dollar spent, the approximate cost per meal  = Salary/Total meals served

Q: What is the difference between a direct cost and an opportunity cost.  Can you show the difference…

A: Direct cost and opportunity cost are two types of costs used in cost accounting.

Q: If a company were filing a claim for compensation with an insurance company for manufacturi…

A: Replacement cost: Replacement cost means the cost which the firm would have to incur to replace or…

Q: Using the high-low method, determine the cost function for each cost?

A: High low method of cost estimation says that costs at highest level and lowest level are to be taken…

Q: what are the differences between the FIFO, LIFO, and the average cost?

A: Inventory: It refers to the items held by an organization which were in various forms like raw…

Q: Tyler Company uses a weighted average process costing system and started 30,000 units this month.…

A: Total units = Beginning units + Units started = 30,000 + 12,000 = 42,000

Q: What is opportunity cost rate?

A: The opportunity cost is the cost of the option or alternative missed due to the acceptance of the…

Q: What is a joint cost? What is a separable cost?

A: Joint Cost: Joint cost is a cost accounting term, which is referred to common costs incurred in…

Q: What is this cost allocation?

A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…

Q: What is a relationship between fixed, variable and semi-variable cost?

A: Cost can be defined as the amount incurred upon the production of goods and services for the final…

Q: Why do cost systems differ in terms of their level of sophistication

A: A cost system is a systematic framework or approach used by organizations to track, assign, and…

Q: What is a standard cost? Explain? Give an example?

A: Standard Cost: Standard cost is the benchmark amount of per unit product, per unit input or per unit…

Q: What is the difference between total costs and marginal costs?

A: Total cost is the total economic cost of production. Variable cost changes according to the quantity…

Q: What does the Unit contribution margin express?

A: Break Even Point:                 Break Even Point is defined as the level where there is no profit…

Q: Holiday Company produces dog food. All direct materials are entered at the beginning of process.…

A: Process costing is used where there are many processes in the same line of business for…

Q: What are Joint Costs?

A: The entity incurs different types of costs while carrying out its day-to-day operations. When a…

Q: What connection exists between unit profit and labor costs?

A: A cost is the amount of money that was expended during the production or delivery of a good or…

Q: What are “initial direct costs” and how are they accountedfor?

A:

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.