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Dubai Refreshments buys orange pulp, and at the end of processing orange pulp splits off into Products jelly, orange juice and orange flavor water. During
Dubai Refreshments buys orange pulp, and at the end of processing orange pulp splits off into Products jelly, orange juice and orange flavor water. During March 2017, the joint costs of processing were AED 1000,000. There was no beginning or ending inventories for the March. Production and sales value information for the March is as follows: Product Units produced units sold Separable Costs per Selling price at Splitoff point per gallon AED gallon AED Selling Price at the end per gallon AED 3.00 1.75 Jelly 0.500 0.670 900,000 400,000 700,000 350,000 0.326 0.375 Orange Juice Orange Water 500,000 300,000 0.210 0.240 0.50 Required: Juice 0.210 300,000 500,000 0.240 0,50 Orange Water Required: A. Assuming the physical quantity method is used, compute the joint cost allocated to the tree products and find cost per unit. 10 marks B. Assuming the estimated Net Realizable Value Method is used, compute the joint cost allocated for Jam, Orange Juice & Orange Water. 20 marks TT TT Paragraph Arial 3 (12pt) T- %D0Q . Of Mashups
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