Question

joint cost allocation for Florissas Flowers

Joint cost allocation Florissa's Flowers jointly produces three varieties of flowers in the same garden: tulips, lilies, and daisies. The Sowers are all watered via the same irigation system and all receives the same amount of water; daisies require three times as much as ies, and the water required for tulips is about halfway between the amounts needed for daisies and lilies Although the lMies and tulips receive more water than they need due to the joint irrigation process, they are not hurt by the overwatering. The joint production cost of the three varieties of flowers is about $30 per harvest. Every harvest yields 10 tulips, 20 lilies, and 20 daisies. 1. Allocate the joint costs of production to each product using the physical units method. Joint Flowers Joint Proportion Costs Allocation Product per Harvest % Tulip % Lily % Daisy Totals Which products receive the largest portio of the joint costs? received the largest portion of the joint costs 2. Allocate the joint costs of production to each product using the weighted average method. Weighted Weighted Percent Joint Weight Flowers Joint Flowers Allocation of Water Costs of Water Factor Product per Harvest % Tulip % LUly % Daisy Previous Next Check My Work 2:14 SAMSUNG HUmem Which products receive the largest portion of the joint costs? received the largest portion of the joint costs. 2. Allocate the joint costs of production to each product using the weighted average method. Weighted Weighted Weight Joint Flowers Flowers Percent Joint of Water of Water Costs Allocation Factor Product per Harvest: % Tulip Lily % Daisy Totals Which product receives the largest portion of the joint costs? received the largest portion of the joint costs. 3. Why would it be important to consider the watering process as an appropriate welght factor? a. The cost of watering the plants is a large portion of the joint costs and the company follows the same irrigation system for all three varieties of flowers. b. It is a natural resource which is more precious. c. Daisies have the highest market value. d. None of the above. Previous Check My Work SAMSUNG

Answer 1

1.

Joint Product	Flowers per Harvest	Proportion	Joint Costs	Allocation
Tulip	10	20%	30	6
Lily	20	40%	30	12
Daisy	20	40%	30	12
Totals	50			30

Lilies and Daisies received the largest portion of the joint costs.

2.

Joint Product	Flowers per Harvest	Weight Factor	Weighted Flowers of Water	Weighted Percent of Water	Joint Costs	Allocation
Tulip	10	2	20	20%	30	6
Lily	20	1	20	20%	30	6
Daisy	20	3	60	60%	30	18
Totals	50		100			30

Daisies received the largest portion of the joint costs.

If weight of lilies is 1, that for daisies will be 1 x 3 = 3 and for tulips (1 + 3)/2 = 4/2 = 2.

3. The cost watering the plants is a large portion of the joint costs and the company follows the same irrigation system for all three varieties of flowers.