Omega Refinery has the option of selling all four products at the split off point. This alternative would yield the following sales for October 2020 production

Products	N$
Crude Sweet @N$10 each	1 000 000
Crude Vigar @N$12 each	600 000
Crude Chilly @N$7 each	1 400 000
Fibra @N$20 each	1 000 000

The following data relates to sales of the refined products in October 2020:

Products	Further process costs to make super products N$	Sales N$
Sun Sweet	4 000 000	6 000 000
Sun Vigar	1 800 000	2 000 000
Sun Chilly	1 800 000	2 800 000

REQUIRED:	MARKS
3.1	Allocate joint costs according to the physical measure method.	10
3.2	Determine whether the entity should process Crude Vigar into Sun Vigar.	7
TOTAL MARKS	17