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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.

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products
Section: Chapter Questions
Problem 14E: LeMoyne Manufacturing Inc.’s joint cost of producing 2,000 units of Product X, 1,000 units of...
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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 Output at Split-Off after Split-Off Price 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 Product Perfume 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. Allocation by bottles Perfume Eau de Toilette Body Splash Total Allocation by weight Perfume Eau de Toilette Body Splash Total Allocation by approx NRV Perfume Eau de Toilette Body Splash Total b. 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 the inventories based on answers obtained in (a). Note: Round your final answer to the nearest whole dollar. 1. Allocation by bottles Inventory levels Perfume Eau de Toilette Body Splash Total 2. Allocation by weight Inventory levels Perfume Eau de Toilette Body Splash Total 3. Allocation by approximated NRV Inventory levels Perfume Eau de Toilette Body Splash Total
Transcribed Image Text: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 Output at Split-Off after Split-Off Price 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 Product Perfume 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. Allocation by bottles Perfume Eau de Toilette Body Splash Total Allocation by weight Perfume Eau de Toilette Body Splash Total Allocation by approx NRV Perfume Eau de Toilette Body Splash Total b. 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 the inventories based on answers obtained in (a). Note: Round your final answer to the nearest whole dollar. 1. Allocation by bottles Inventory levels Perfume Eau de Toilette Body Splash Total 2. Allocation by weight Inventory levels Perfume Eau de Toilette Body Splash Total 3. Allocation by approximated NRV Inventory levels Perfume Eau de Toilette Body Splash Total
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