Joint cost allocation
Lovely Lotion Inc. produces three different lotions: hand, body, and foot. The lotions are produced jointly in a mixing process that costs a total of $ per batch. At the splitoff point, one batch produces and bottles of hand, body, and foot lotion, respectively. After the splitoff point, hand lotion is sold immediately for $ per bottle. Body lotion is processed further at an additional cost of $ per bottle and then sold for $ per bottle. Foot lotion is processed further at an additional cost of $ per bottle and then sold for $ per bottle. Assume that body and foot lotion could be sold at the splitoff point for $ and $ per bottle, respectively.
Using the market value at splitoff method, allocate the joint costs of production to each product. Round your answers to two decimal places.
tableJoint Product,tableBottlesper BatchtableMarket Valueper Bottle atSplitOfftableTotal MarketValue atSplitOfftablePercent ofTotal MV atSplitOffJoint Costs,AllocationHand lotion,,$$$$
