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

90.2K

Verified Solution

Question

Accounting

Choi Company manufactures two skin care lotions, Smooth Skin andSilken Skin, from a joint process. The joint costs incurred are$310,000 for a standard production run that generates 180,000 pintsof Smooth Skin and 280,000 pints of Silken Skin. Smooth Skin sellsfor $3.60 per pint, while Silken Skin sells for $5.10 per pint.(Do not round intermediate calculations. Round finalanswers to nearest whole dollar amounts.)

  
Required:
1. Assuming that both products are sold at the split-off point, howmuch of the joint cost of each production run is allocated toSmooth Skin using the relative sales value method?
2. If no separable costs are incurred after the split-off point,how much of the joint cost of each production run is allocated toSilken Skin using the physical measure method?
3. If separable processing costs beyond the split-off point are$1.30 per pint for Smooth Skin and $1.80 per pint for Silken Skin,how much of the joint cost of each production run is allocated toSilken Skin using a net realizable value method?
4. If separable processing costs beyond the split-off point are$1.30 per pint for Smooth Skin and $1.80 per pint for Silken Skin,how much of the joint cost of each production run is allocated toSmooth Skin using a physical measure method?

1. Relative sales value method - Smooth Skin:

2. Physical measure method - Silken Skin:

3. Net realizable value method - Silken Skin:

4. Physical measure method - Smooth Skin:

  

Answer & Explanation Solved by verified expert
4.4 Ratings (735 Votes)
Allocated Joint cost Smooth Silken 1 Relative sales value method 96763 213237 2 Physical measure method 121304 188696 3 Net realizable value method 95919 214081 4 Physical measure method 121304 188696 Workings 1 Relative sales value method Smooth Silken Total a    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students