Question: Approximated net realizable value method and sell or process further Lauren Inc. makes three products that can be sold at split-off or processed further and


Approximated net realizable value method and sell or process further Lauren Inc. makes three products that can be sold at split-off or processed further and then sold. The joint cost for April is $1,080,000. The number of ounces in a bottle of each product is: perfume, one; eau de toilette, two; and body splash, three. 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. Note: Round proportions to the nearest whole percentage and dollar amounts to the nearest whole dollar. Approximated net realizable value method and sell or process further Lauren Inc. makes three products that can be sold at split-off or processed further and then sold. The joint cost for April is $1,080,000. The number of ounces in a bottle of each product is: perfume, one; eau de toilette, two; and body splash, three. 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. Note: Round proportions to the nearest whole percentage and dollar amounts to the nearest whole dollar
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
