1. Company: Delta Chemicals Ltd.

Scenario: Joint Cost Allocation

Product Details:

• Product A:
  • Sales Value at Split-off: $80,000
  • Separate Costs after Split-off: $50,000
  • Joint Costs Incurred: $30,000

• Product B:
  • Sales Value at Split-off: $120,000
  • Separate Costs after Split-off: $70,000
  • Joint Costs Incurred: $30,000

Requirements:

• Allocate joint costs between Product A and Product B using the sales value at split-off method. Prepare a table showing the allocated joint costs and the resulting costs after split-off for each product.