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3 B Cardbury Ltd has the possibility to further process these products in order to increase their final sales value. The following additional cost and
3 B Cardbury Ltd has the possibility to further process these products in order to increase their final sales value. The following additional cost and final sales value after the processing is as follows: Improved product Additional processing Sales value after further cost processing Whole milk E14 per litre 20 per litre Semi Skimmed milk 2 per litre 8 per litre Cheese 6 per ton 16 per ton Required: A. Using Sales Value Method, allocate the joint cost to the three products and to search 940 Required: A. Using Sales Value Method, allocate the joint cost to the three products and calculate the cost per unit for each product. (10 marks) B. If Cardbury Ltd wishes to further process these three products after the split off point, calculate which of the products should be further processed and explain your answer. Your answer should indicate which product will be most profitable. (10 marks) Total [20 marks) 3 B Cardbury Ltd has the possibility to further process these products in order to increase their final sales value. The following additional cost and final sales value after the processing is as follows: Improved product Additional processing Sales value after further cost processing Whole milk E14 per litre 20 per litre Semi Skimmed milk 2 per litre 8 per litre Cheese 6 per ton 16 per ton Required: A. Using Sales Value Method, allocate the joint cost to the three products and to search 940 Required: A. Using Sales Value Method, allocate the joint cost to the three products and calculate the cost per unit for each product. (10 marks) B. If Cardbury Ltd wishes to further process these three products after the split off point, calculate which of the products should be further processed and explain your answer. Your answer should indicate which product will be most profitable. (10 marks) Total [20 marks)
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