Reference no: EM132841978
Question - Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process. The joint costs incurred are $430,000 for a standard production run that generates 260,000 pints of Smooth Skin and 170,000 pints of Silken Skin. Smooth Skin sells for $3.30 per pint, while Silken Skin sells for $4.30 per pint.
Required -
1. Assuming that both products are sold at the split-off point, how much of the joint cost of each production run is allocated to Smooth 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 to Silken Skin using the physical measure method?
3. If separable processing costs beyond the split-off point are $1.10 per pint for Smooth Skin and $1.00 per pint for Silken Skin, how much of the joint cost of each production run is allocated to Silken Skin using a net realizable value method?
4. If separable processing costs beyond the split-off point are $1.10 per pint for Smooth Skin and $1.00 per pint for Silken Skin, how much of the joint cost of each production run is allocated to Smooth Skin using a physical measure method?
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