Answer: Face cream = 25/100 * $200000
= $50,000
Body lotion = 50/100 * $200000
= $100,000
Liquid soap = 25/100 * $200,000
= $50,000
Explanation:
Formula used:
Weight factors
Face cream =300
Body lotion = 200 * 3 = 600
Liquid soap = 300
Total weight factor = 1200 pounds
Percentage of total= Weights / Total weight factor *100
Face cream = 300/1200 * 100 = 25%
Body lotion = 600/1200 * 100 = 50%
Liquid soap = 300/1200 *100 = 25%
Allocation of cost= $200,000 × percentage of total
Face cream = 25/100 * $200000
= $50,000
Body lotion = 50/100 * $200000
= $100,000
Liquid soap = 25/100 * $200,000
= $50,000
Answer:
A) face cream = $50,000
B) body lotion = $100,000
C) liquid soap = $50,000
Explanation:
product quantity weight factor final quantity
face cream 300 1 300
body lotion 200 3 600
liquid soap 300 1 300
total 1,200
total joint costs = $200,000
joint cost per weighted pound = $200,000 / 1,200 = $166,67
allocated joint costs:
product final quantity cost per unit total
face cream 300 $166,67 $50,000
body lotion 600 $166,67 $100,000
liquid soap 300 $166,67 $50,000
total 1,200 $200,000
