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.Bottles of Sales Price Separate Cost Final SalesOutput at Split-Off after Split-Off20,000Perfume$7.00$2.50Price$16.5013.00Eau de toilette32,0005.001.50Body splash28,0005.002.0012.00The 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.Producta. Allocate the joint cost based on the number of bottles, weight, and approximated net realizable values at split-off.

Allocation of Joint Cost :There are so many expenses incurred when producing products, general…

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. Bottles of Sales Price Separate Cost Final Sales Output at Split-Off after Split-Off Price Product Perfume 20,000 $7.00 $2.50 Eau de toilette 32,000 5.00 1.50 Body splash 28,000 5.00 2.00 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. $16.50 13.00 12.00 a. Allocate the joint cost based on the number of bottles, weight, and approximated net realizable values at split-off.

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. Bottles of Sales Price Separate Cost Final Sales Output at Split-Off after Split-Off Price Product Perfume 20,000 $7.00 $2.50 Eau de toilette 32,000 5.00 1.50 Body splash 28,000 5.00 2.00 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. $16.50 13.00 12.00 a. Allocate the joint cost based on the number of bottles, weight, and approximated net realizable values at split-off.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 35P: Orman Company produces neon-colored covers for tablets (e.g., iPads). For last year, Orman reported...

See similar textbooks

Similar questions

Lauren Inc. makes three products that can be sold at split-off or processed further and then sold. The joint cost for April is $2,592,000. Bottles of Sales Price Separate Cost Final Sales Output at Split-Off after Split-Off Price 48,000 $7.00 $2.50 $16.50 Eau de toilette 76,800 5.00 1.50 13.00 Body splash 67,200 5.00 2.00 12.00 Product Perfume 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. Allocation by bottles Perfume Eau de Toilette Body Splash Total Allocation by weight Perfume Eau de Toilette Body Splash Total Allocation by approx NRV Perfume Eau de Toilette Body Splash Total b. Assume that all products are processed further and…
Milktopia, Inc. produces and sells milk flavored bubble gum. Over the last five months Milktopia had the following production costs and production volume.. Cost P 6,000 6,659 8,370 8,800 8,050 4. Using the high-low method, what is the fixed cost per month for bubble gum Volume (in cases) 12 14 Month March April Мay June July 18 19 17 production? a. P 400 b. P 1,200 c. P 4,800 d. P 7,600 5. The variable cost per case is a. P 400 b. Р 600 c. P 1,200 d. P 2,800
Blossom Inc. produces three separate products from a common process costing $100,300. Each of the products can be sold at the split-off point or can be processed further and then sold for a higher price. Shown below are cost and selling price data for a recent period. Sales Valueat Split-OffPoint Cost toProcessFurther Sales Valueafter FurtherProcessing Product 10 $59,400 $100,900 $190,100 Product 12 15,000 30,100 34,000 Product 14 55,600 149,400 215,900 Determine total net income if all products are sold at the split-off point. Net income
Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Selling price per unit Variable expenses per unit Traceable fixed expenses per year %24 %24 2.50 $ 130,000 Greengrow 2$ $ 13.00 $ 34,000 8.00 38.00 Last year the company produced and sold 37,000 units of Weedban and 17,000 units of Greengrow. Its annual common fixed expenses are $101,000. Required: Prepare a contribution format income statement segmented by product lines. Product Line Total Weedban Greengrow Company
Carter Co. sells two products: Arks and Bins. Last year, Carter sold 14,000 units of Arks and 56,000 units of Bins. Related data are as follows: Product Unit SellingPrice Unit VariableCost Unit ContributionMargin Arks $120 $80 $40 Bins 80 60 20 Carter Co.'s variable cost of E was a.$64 b.$60 c.$140 d.$70
Stahl Inc. produces three separate products from a common process costing $100,300. Each of the products can be sold at the split-off point or can be processed further and then sold for a higher price. Shown below are cost and selling price data for a recent period. Sales Valueat Split-OffPoint Cost toProcessFurther Sales Valueafter FurtherProcessing Product 10 $59,400 $100,900 $190,100 Product 12 15,000 30,100 34,000 Product 14 55,600 149,400 215,900
Royal Lawncare Company produces and selts two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow Product Weedban $ 11.00 $ 2.30 $ 131,000 Greengrow Selling price per unit Varlable expenses per unit Traceable fixed expenses per year $ 35.00 $ 12.00 $ 41,000 Last year the company produced and sold 35,500 units of Weedban ond 23,000 units of Greengrow Its annual common fixed expenses are $96,000 Required: Prepare a contribution format income statement segmented by product lines. Product Line Total Company Weedban Greengrow
Royal Lawncare Company produces and sells two packaged products- Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Greengrow Selling price per unit $ 11.00 $ 37.00 Variable expenses per unit $ 2.70 $ 10.00 Traceable fixed expenses per year. $ 134,000 $ 31,000 Last year the company produced and sold 39, 500 units of Weedban and 15, 500 units of Greengrow. Its annual common fixed expenses are $98,000. Required: Prepare a contribution format income statement segmented by product lines.
West Island distributes a single product. The companys sales and expenses for the month of June are shown. Using the information presented, answer these questions: A. What is the break-even point in units sold and dollar sales? B. What is the total contribution margin at the break-even point? C. If West Island wants to earn a profit of $21,000, how many units would they have to sell? D. Prepare a contribution margin income statement that reflects sales necessary to achieve the target profit.
Orman Company produces neon-colored covers for tablets (e.g., iPads). For last year, Orman reported the following: Last year, Orman produced 89,000 units and sold 90,500 units at 10.50 per unit. Required: 1. Prepare a statement of cost of goods manufactured. 2. Prepare an absorption-costing income statement.
Krispies Ltd manufactures and sells three products which have the following revenue and costs per unit: Snap Crackle PopSelling price per unit snap: R15 crackle: R20 pop: R12Variable cost per unit snap: R10 crackle:1R3 pop: R6Fixed cost per unit snap: R2 crackle: R3 pop: R2 Unit fixed costs are based on the following sales volumes:Snap – 15 000 unitsCrackle – 12 000 unitsPop – 30 000 units Required:Calculate the aggregate break‐even units and sales for Krispies Ltd.Round to two decimals.
Communication codes of our products are TEL1 and TEL2. Their sale prices are respectively 200$ and 500$. The yearly capacity of the business is 60.000 units TEL1 and 30.000 units TEL2. Fixed costs are 11.934.000$ and are uploaded to goods according to their revenues. Variable costs are as follows: TEL1 TEL2 Direct Material30 $140 $Direct Labor20 $110 $Variable MO.10 $ 75 Sa) Compute the sale mix breakeven point and the sale quantity of each good at the breakeven point.b) Compute the the profit at the budgeted sale quantity.c) To get 9.945.000$ profit, compute the sale prices of each good.