50000 179600 898 Eau de toilette 410400 48000 458400 716 Sales Price at Split

50000 179600 898 eau de toilette 410400 48000 458400

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50,000 $179,600 $ 8.98 Eau de toilette $410,400 $ 48,000 $458,400 $ 7.16 Sales Price at Split-Off Separate Cost after Split-Off Number of Ounces per bottle Total Ounces Final Price per ounce
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Body Splash $540,000 $ 56,000 $596,000 $ 7.10 Total $1,234,000 Ending Inventory Valuation Ounces Cost per ounce Total Perfume 600 $8.98 $5,388.00 Eau de toilette 3200 $7.16 $22,912.00 Body Splash 5040 $7.10 $35,784.00 Total $64,084.00 Approximated NRV Computation allocated joint cost Seprate costs inventory cost cost per ounce Perfume $324,000 $ 50,000 $374,000 $ 18.70 Eau de toilette $432,000 $ 48,000 $480,000 $ 7.50 Body Splash $324,000 $ 56,000 $380,000 $ 4.52 Total $1,234,000 Ending Inventory Valuation Ounces Cost per ounce Total Perfume 600 $18.70 $11,220 Eau de toilette 3200 $7.50 $24,000 Body Splash 5040 $4.52 $22,781 Total $58,001 Issues with the Approximated NRV allocation Sales Value per ounce cost per ounce Perfume $ 16.50 $ 18.70 $ (2.20) $ (2.20) Eau de toilette $ 6.50 $ 7.50 $ (1.00) $ (2.00) Body Splash $ 4.00 $ 4.52 $ (0.52) $ (1.56) Total Sales Value Seprate Cost Product Margin Perfume $330,000 $50,000 $280,000 Eau de toilette $416,000 $48,000 $368,000 Body Splash $336,000 $56,000 $280,000 Total $1,082,000 $154,000 $928,000 Product Margin $928,000 Joint Cost $1,080,000 Net income (loss) ($152,000) The company is not selling any of its products at a high enough price to cover costs income (loss) per ounce income (loss) per bottle
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