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Khemikhale Ltd produces chemicals RFV and NJU during a joint production process. A by - product namely AAA, is also produced during this process. The
Khemikhale Ltd produces chemicals RFV and NJU during a joint production process. A byproduct namely AAA, is also produced during this process.
The following costs are incurred during the joint production process before the splitoff point:
tableCostRRaw materials,RLabour costRManufacturing overhead cost,RNonmanufacturing overhead cost,R
In addition, the following information is provided
There was no opening or closing inventory of any kind.
Product RFV is sold directly after splitoff.
Product NJU requires further processing into product NJL at a cost of R before it is in a sellable condition. No increase or decrease in volume occurs during this further processing.
The total output for Product AAA was sold for R and the related selling cost was R
litres of product RFV litres of product NJL and litres of product AAA were produced.
Joint costs are allocated to joint products using the physical measure method.
The total joint cost to be allocated to joint products is
Select one:
a R
b None of the options
c R
d R
e R
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