Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help me i will give good rating Neslez Company buys cocoa beans and processes them into three products at split off point: cocoa butter,
Please help me i will give good rating
Neslez Company buys cocoa beans and processes them into three products at split off point: cocoa butter, cocoa powder, and tanning cream. The three main products can be further refined into premium products: Premium cocoa butter, premium cocoa powder, and premium tanning cream. In the most recent month, the output at the split off point was as follows: Continued... Product kilograms 300,000 Cocoa butter Cocoa powder 400,000 Tanning cream 200,000 The joint costs of purchasing and processing the cocoa beans were RM150,000. Neslez Company had no beginning or ending inventories. Cocoa butter, cocoa powder and tanning cream were further refined and all of them are then sold. March's Data is as follows: Separable processing costs to Product make premium products Revenues Premium cocoa butter RM130,000 RM350,000 Premium cocoa powder RM40,000 RM160,000 Premium tanning cream RM20,000 RM140,000 Nezlez had the option of selling cocoa butter, cocoa powder and tanning cream at the split off point. This alternative would have yielded the following revenues for the March production: Revenues Product Cocoa butter RM60,000 Cocoa powder RM70,000 Tanning cream RM50,000 Required Compute the production costs allocated to each product sold in March 2022, using the Net Realizable Value (NRV) methodStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started