Al 51% 22:29 Page 2 of 7 Question 2(10 Marks - 18 Minutes) Scorpion City Works is a manufacturer of cemetery headstones and architectural granite slabs Scorpion City excavates blocks of granite from its quarry from its joint processes of Quarry and Cutting. Two joint products (cemetery monuments and architectural granite) are produced along with a by-product called grit Cemetery monuments are cut, polished, and engraved in a variety of standard shapes, sizes, and patterns and sold to funeral homes. Architectural granite slabs are special ordered by contractors for office buildings. These slabs are cut and polished to exacting specifications. The small pieces of granite resulting from the cutting process are crushed and sold to farm-supply outlets as poultry grit Scorpion City has provided the following costs and output information: Process Cost Tons of Output Quarry N$350,000 100.000 Cutting N$250,000 90.000 Monuments N$300,000 25,000 Granite slabs N$400,000 60,000 Grit N$10,000 5,000 Quarry and Cutting are joint processes. A local farm-supply distributor purchases all of the grit that is produced at $40 per ton. Assume that Scorpion City uses the physical units method to allocate joint costs MARKS 7 REQUIRED: 2.1 What would be the cost per ton of monuments and granite slabs, assuming that the grit is accounted for as 'other income What would be the cost per ton of monuments and granite slabs, assuming 22 that the grit is accounted for as by-product revenue deducted from the main product cost? 3 TOTAL MARKS 10 Page 3 of 7 Question 3 (15 Marks - 27 Minutes) Logic Construction Lid manufactures a single product using a process costing system. The product has to go through two processes A & B before it is ready for sale. For the month of March 2015, the following information is available in respect of Process A Units N$ Al 51% 22:29 Page 2 of 7 Question 2(10 Marks - 18 Minutes) Scorpion City Works is a manufacturer of cemetery headstones and architectural granite slabs Scorpion City excavates blocks of granite from its quarry from its joint processes of Quarry and Cutting. Two joint products (cemetery monuments and architectural granite) are produced along with a by-product called grit Cemetery monuments are cut, polished, and engraved in a variety of standard shapes, sizes, and patterns and sold to funeral homes. Architectural granite slabs are special ordered by contractors for office buildings. These slabs are cut and polished to exacting specifications. The small pieces of granite resulting from the cutting process are crushed and sold to farm-supply outlets as poultry grit Scorpion City has provided the following costs and output information: Process Cost Tons of Output Quarry N$350,000 100.000 Cutting N$250,000 90.000 Monuments N$300,000 25,000 Granite slabs N$400,000 60,000 Grit N$10,000 5,000 Quarry and Cutting are joint processes. A local farm-supply distributor purchases all of the grit that is produced at $40 per ton. Assume that Scorpion City uses the physical units method to allocate joint costs MARKS 7 REQUIRED: 2.1 What would be the cost per ton of monuments and granite slabs, assuming that the grit is accounted for as 'other income What would be the cost per ton of monuments and granite slabs, assuming 22 that the grit is accounted for as by-product revenue deducted from the main product cost? 3 TOTAL MARKS 10 Page 3 of 7 Question 3 (15 Marks - 27 Minutes) Logic Construction Lid manufactures a single product using a process costing system. The product has to go through two processes A & B before it is ready for sale. For the month of March 2015, the following information is available in respect of Process A Units N$