Net realisable value cost-allocation method, further process decision. (20-30 minutes) Langholmen-Sverige, AB, crushes and refines mineral ore into three products in a joint-cost operation. Costs and production for 2007 were as follows: Department 1, at initial joint costs of SKr 420 000, produces 20 000 kg of Vadstena, 60000 kg of Vattervik and 100000 kg of Birgitta Department 2 processes Vadstena further at a cost of SKr 100 000 Department 3 processes Vttervik further at a cost of Kr 200 000 Results for 2007 are: Vadstena: 20 000 kg completed; 19000 kg sold for SKr 20 per kg: closing stock, 1000 kg Vattervik: 60000 kg completed; 59000 kg sold for Skr 6 per kg: closing stock, 1000 kg Birgitta: 100 000 kg completed; 99 000 kg sold for Skr 1 per kg; closing stock, 1000 kg Birgitta required no further processing. A Required 1 Use the estimated NRV method to allocate the joint costs of the three products. Calculate the total costs and unit costs of closing stock. 2 Calculate the individual gross-margin percentages of the three products. 3 Suppose Langholmen-Sverige receives an offer to sell all of its Vttervik product for a price of Skr 2 per kg at the split-off point before going through Department 3, just as it comes off the production line in Department 1. Using last year's figures, would Langholmen-Sverige be better off by selling Vttervik that way or processing it through Department 3 and selling it? Show computations to support your answer. Disregard all other factors not mentioned in the