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CoursHeroTranscribedText: 16. LO.3 (Approximated net realizable value method) The Scent of Money makes three products...

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CoursHeroTranscribedText: 16. LO.3 (Approximated net realizable value method) The Scent of Money makes three products that can be sold at split-off or processed further and then sold. The joint cost for April 2010 is $1,080,000. Separate Bottles of Sales Price at Cost after Final Sales Product Output Split-Off Split-Off Price Perfume 20,000 $7.00 $2.50 $16.50 Eau de toilette 32,000 5.00 1.50 13.00 Body splash 28,000 5.00 2.00 12.00 The number of ounces in a bottle of each product is: perfume, 1; eau de toilette, 2; and body splash, 3. 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. (Round to the nearest whole percentage.) b. Assume that all products are processed further and completed. At the end of the period, the inventories are as follows: perfume, 600 bottles; eau de toilette, 1,600 bottles; and body splash, 1,680 bottles. Determine the values of the inventories based on answers obtained in (a). (Round per-unit costs to the nearest cent.) c. Do you see any problems with the allocation based on approximated net realizable value

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