Joint cost the sun-kissed company manufactures two skin-care lotions, soft skin and silken skin, out of a joint process. the joint (common) costs incurred are $430,000 for a standard production run that generates 195,000 gallons of soft skin and 120,000 gallons of silken skin. additional processing costs beyond the split-off point are $1.40 per gallon for soft skin and $0.90 per gallon for silken skin. soft skin sells for $2.40 per gallon while silken skin sells for $3.9 per gallon.

Soft Skin    unit cost: 2.50

Silken Skin unit cost: 2.19

Explanation:

We have to allocate the common cost incurred of 430,000 dollars to Soft Skin and Silken Skin

For that we can consider the revenue generate for each product:

Soft: 195,000 x 2.40 = 468,000

Silken: 120,000 x 3.9 = 468,000

As both product generate the same revenue we allocate 50/50

Soft allocated common cost:

430,000 x 50% = 215,000

Unit cost: 215,000 / 195,000 = 1.1025641

+ further processing cost:         1.40

total unit cost:                           2.50

Silken allocated common cost:

430,000 x 50% = 215,000

Unit cost: 215,000 / 120,000 = 1.7916667

+ further processing cost:        0.40

total unit cost:                           2. 19

the correct option is c