FACULTY OF COMMERCE, MANAGEMENT AND LAW Except for the scraps, hooves and bones, hides are the only by-product. The NRV of the by- product should be used to reduce the joint cost of the joint products. Marks REQUIRED Sub- Total total 3.1 Use the net Realizable value method to allocate joint costs to the products. 14 14 3.2 3.3 3.4 The management of Okapuka Tannery thinks the sales value method of allocating joint costs is the best method for decision making. Explain whether you agree or disagree with this statement. TOTAL MARKS Use the physical unit method to allocate joint costs to the products. Use the constant gross profit method to allocate joint costs to the products. 6 8 28 22 20 2 30 30 30 Total Assignment 1: 100 marks