Answer:
1.) Lilies and Daisies received the largest portion of the joint costs.
2.) Daisies received the largest portion of the joint costs.
3.) 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.
Explanation:
Physical unit method :
Joint product _Flo /harvest _prop__JC__Alloc
Tullip ________10 _______0.20 _ 30 __ 6
Lilly _________ 20 ______0.40 _ 30 __ 12
Daisy ________ 20 ______0.40 _ 30 __ 12
Allocation = proportion * joint cost
B.)
Weighted average method :
If daisy requires 3 tines as much as lilies and tulips requires something in between both ;
Then ;
Daisy = 3 ; lilies = 1 ;
Tullips = (daisy + lilies) / 2 = (3 +1) / 2= 4/2 = 2
Weighted average method :
JP_Flo /H_ WF__WFW_W%__pro__JC__Alloc
Tullip_10 __ 2 __ 20 _ 20% _0.20 _ 30 __ 6
Lilly_ 20 ___ 1 __ 20 _ 20% _0.20 _ 30 __ 6
Daisy_20 __ 3__ 60 _ 60% _0.60 _ 30 __ 18
Allocation = joint cost * proportion
