Choi Company manufactures two skin care lotions, Smooth Skin andSilken Skin, from a joint process. The joint costs incurred are$430,000 for a standard production run that generates 200,000 pintsof Smooth Skin and 170,000 pints of Silken Skin. Smooth Skin sellsfor $4.00 per pint, while Silken Skin sells for $5.20 per pint. (Donot round intermediate calculations. Round final answers to nearestwhole dollar amounts.)
Required: 1. Assuming that both products are sold at thesplit-off point, how much of the joint cost of each production runis allocated to Smooth Skin using the relative sales valuemethod?
2. If no separable costs are incurred after the split-off point,how much of the joint cost of each production run is allocated toSilken Skin using the physical measure method?
3. If separable processing costs beyond the split-off point are$1.40 per pint for Smooth Skin and $1.40 per pint for Silken Skin,how much of the joint cost of each production run is allocated toSilken Skin using a net realizable value method?
4. If separable processing costs beyond the split-off point are$1.40 per pint for Smooth Skin and $1.40 per pint for Silken Skin,how much of the joint cost of each production run is allocated toSmooth Skin using a physical measure method?
