(Approximated net realizable value method) Hammon Perfume Company makes three products that can either be sold at split-off or processed further and then sold. April’s joint cost is $240,000.

The number of ounces of product in each perfume bottle is 3; eau de toi¬ lette is 2; and body splash is 3- Assume that all products are processed fur¬ ther after split-off.

a. Allocate the joint cost based on the number of bottles, weight, and ap¬ proximated net realizable values at split-off.

b. Assume that all products are additionally processed and completed. At the end of the period, the inventories are as follows: perfume, 500 bot¬ tles; eau de toilette, 1,000 bottles; and body splash, 1,500 bottles. Deter¬ mine the values of the inventories based on answers obtained in part (a). LO1.

Sales Separate Final Product Bottles of Output Price at Split-Off Cost after Sales Split-Off Price Perfume 15,000 $6.00 $2.00 $8.50 Eau de toilette 20,000 4.00 1.00 6.00 Body splash 25,000 4.00 1.50 6.00