Estimated net realisable value method. (10 minutes) Miljg-Sape, AS, produces two joint products, cooking oil and soap oil, from a single vegetable oil refining process. In July 1999, the joint costs of this process were NKr 24,000,000. Separable processing costs beyond the split-off point were cooking oil, NKr 30,000,000; and soap oil, NKr 7,500,000. Cooking oil sells for NKr 50 per drum. Soap oil sells for NKr 25 per drum. Miljg-Sape produced and sold 1,000,000 drums of cooking oil and 500,000 drums of soap oil. There are no beginning or ending stocks of cooking oil or soap oil. kio5 REQUIRED Allocate the NKr 24,000,000 joint costs using the estimated NRV method.