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Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a ...

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Accounting

Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a
joint process. The joint costs incurred are $410,000 for a standard production run that
generates 290,000 pints of Smooth Skin and 130,000 pints of Silken Skin. Separable
processing costs beyond the split-off point are $1.60 per pint for Smooth Skin and $1.30
per pint for Silken Skin.
Required: How much of the joint costs are allocated to Smooth Skin and Silken Skin
under each of the following methods:
Physical quantity method
Sales value at split-off method. Assume the following sales prices at the split-off point:
Smooth Skin sells for $2.50 per pint, while Silken Skin sells for $4.00 per pint.
Net realizable value method. Assume the following sales prices after further
processing: Smooth Skin sells for $2.50 per pint, while Silken Skin sells for $4.00 per
pint.
(For all requirements, do not round intermediate calculations. Round final answers to
nearest whole dollar amounts.)
Answer is complete but not entirely correct.
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