O Ltd. produces three products: Bo, Mo and Lo from a single joint process. The joint costs for the period are 210,800. O Ltd. uses the physical measures method to apportion joint costs to products.

Kilos of output Selling price per kilo Bo 200 650

Mo 800 825 Lo 1,000 800

11.What amount of joint costs will be allocated to each kilo of product Bo?

a) 32.00 b) 60.22 c) 79 d) 105.40

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12.How much profit will be generated from product Lo?

a) 800,000 b) 694,600 c) 470,400 d) 320,200