What formula for this? **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, 200 pounds of body lotion, and 300 pounds of liquid soap and has incurred $200,000 in joint costs.**Using the weighted average method, allocate the joint costs to:**a. **Face Cream** with a weight factor of 1 b. **Body Lotion** with a weight factor of 3 c. **Liquid Soap** with a weight factor of 1 (Spaces are provided to fill in the allocated cost for each product.)### Weighting Explanation:1. **Face Cream:** - Weight Factor: 12. **Body Lotion:** - Weight Factor: 33. **Liquid Soap:** - Weight Factor: 1The weighted average method involves assigning costs based on the relative weight factors of the products involved. This method helps in fairly distributing the costs associated with a joint manufacturing process, based on the significance or volume of each product.

Formula: Allocation of joint costs = Total cost x ( Units of particular product / Total number of units produced ) Division of units of particular product with total number of units produced to be multiply with Total cost incurred. Total cost = $ 200000 Total pounds = 300 + 200 + 300 = 800 pounds A ) Face cream = 200000 x ( 300 / 800 ) = $ 75000 B ) Body lotion = 200000 x ( 200 / 800 ) = $ 50000 C ) Liquid soap = 200000 x ( 300 / 800 ) = $ 75000

Business

Accounting

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, 200 pounds of body lotion, and 300 pounds of liquid soap and has incurred $200,000 in joint costs. Using the weighted average method, allocate the joint costs to: a. Face Cream with a weight factor of 1 %$4 b. Body Lotion with a weight factor of 3 c. Liquid Soap with a weight factor of 1

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, 200 pounds of body lotion, and 300 pounds of liquid soap and has incurred $200,000 in joint costs. Using the weighted average method, allocate the joint costs to: a. Face Cream with a weight factor of 1 %$4 b. Body Lotion with a weight factor of 3 c. Liquid Soap with a weight factor of 1

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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