(Solution) - The Scent of Money makes three products that can be -(2025 Original AI-Free Solution)

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The Scent of Money makes three products that can be sold at split-off or processed further and then sold. The joint cost for April 2010 is $1,080,000.

The number of ounces in a bottle of each product is: perfume, 1; eau de toilette, 2; and body splash, 3. 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. (Round to the nearest whole percentage.)
b. Assume that all products are processed further and completed. At the end of the period, the inventories are as follows: perfume, 600 bottles; eau de toilette, 1,600 bottles; and body splash, 1,680 bottles. Determine the values of the inventories based on answers obtained in (a). (Round per-unit costs to the nearest cent.)
c. Do you see any problems with the allocation based on approximated net realizablevalue?