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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 by-product namely AAA, is also produced during this process.
The following costs are incurred during the joint production process before the split-off point:
\table[[Cost,R],[Raw materials,R2000000],[Labour cost,R1300000],[Manufacturing overhead cost,R3500000],[Non-manufacturing overhead cost,R700000]]
In addition, the following information is provided
There was no opening or closing inventory of any kind.
Product RFV is sold directly after split-off.
Product NJU requires further processing into product NJL at a cost of R120000 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 R50000 and the related selling cost was R10000.
450000 litres of product RFV,300000 litres of product NJL and 50000 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. R6760000
b. None of the options
c. R7500000
d. R6800000
e. R6845000
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