Management accounting 1B. Need Full and clear answers.

10 2.2 6 7. You many assume that one liter is equivalent to one kilo and that the three products are immediately identifiable at split off. Requirement Marks 2.1 Calculate the total joint costs to be allocated to joint products in May 2020. Calculate the gross profit for each of the three products, using the following methods of allocating joint process costs. 12 2.2.1 physical units methods 2.2.2 Sales value at split off method. Snackers Kitchen has offered to buy the whole output of product CM after further processing into sour cream. The further processing will cost N$60 per kilo. There will be a 10% loss in the process (.e. in further processing) and the sour cream will be sold for N$150 per kilo. The loss incurred in further processing has no scrap value. 2.3.1 Calculate the total profit for product CM if further processing is carried out (You may assume that joint costs are allocated on physical unit 3 basis). 2.3.2 Calculate the minimum selling price for product CM that should be charged if WDP wants to achieve the same profit as calculated in (2.2.1) above (i.e. Same profit when joint costs are allocated on physical units basis). N.B. Where applicable show all workings. Total 2.3 3 34 The following information relates to the process for the month ended 31 August 2020: Details Notes Quantity Amount Sales - HoneyDew 1 ?? N$783 250 Opening inventory of finished goods (HoneyDew) 150 units N$?? Closing inventory of finished goods (HoneyDew) ?? units N$?? Opening work-in-progress (WIP) - 60% complete 2 1 200 kg N$64 800 Closing WIP - 80% complete 750 kg N$?? Raw-honey put into production in the current period 5 800 kg N$331 300 Direct labour costs: current period 3 N$56 920 Production overheads: current period N$60 000 3 3 Notes: 1. Honey Dew was sold at N$65 per unit in the month of August 2020. 2. N$10 800 of the opening WIP value relates to the conversion costs and the balance thereof relates to the raw-honey costs. 3. TW completed and transferred 6 000 kilograms during the month. 4. The company values inventory based on the First in, First Out (FIFO) method. Marks 10 Requirement 3.1 Prepare the actual quantity statement for TW for the month of August 2020. 3.2 Calculate TW's actual closing finished goods value as it would have appeared in the profit statement for the month of August 2020. 3.3 Briefly contrast the treatment of a normal loss value to that of an abnormal loss value in the profit statement applying process costing principles. Ignore the implications of scrap value(s). 17 N N.B. Where applicable show all workings. Round off your workings and final answer to two decimal places. Total 29 Total assignment 1: 93 marks Page 13 of 16 Marks 12 14 Requirement 1.1 Calculate the cost per unit of EnvCart applying absorption costing principles Prepare a profit statement for the year 2020 using: 1.2 1.2.1 Absorption costing format 1.2.2 Marginal costing/Variable costing format Prepare a reconciliation statement to reconcile the profit calculated using 1.3 absorption costing to that calculated using Marginal costing. 1.4 Explain the reasons why these two methods give different profit figures. N.B. Where applicable show all workings. Total 2 2 30