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1. LO 3: NRV AND PHYSICAL QUANTITY METHOD Jamjam Enterprises buys mixed fruits, and at the end of processing mixed fruits splits off into Products

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1. LO 3: NRV AND PHYSICAL QUANTITY METHOD Jamjam Enterprises buys mixed fruits, and at the end of processing mixed fruits splits off into Products jam, juice, and candies. During March 2016, the joint costs of processing were AED 210,000. There was no beginning or ending inventories for the March. Production and sales value information for the March is as follows: Units Product produced Gallons sold Selling price at Split off point per gallon AED Separable Costs per gallon AED Selling Price at the end of the process per gallon AED 1.5 3.2 3.8 Jam Juice Candies 15,000 25,000 30,000 20,000 30,000 50,000 1.5 2.4 2 0.2 1 1.5 Required: Compute the cost per gallon for Jam, Juice & Candies products: A. Assuming the physical quantity method is used. B. Assuming the estimated Net Realizable Value Method is used

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