Q$.$ No$.5$ The PSO buys petroleum raw material Rs$\mathrm{.}1\mathrm{.}20$ a liter. At the end of processing in department A$,$ Petroleum

product split off into three product's, regular, super, and hioctane. Regular is sold at the split$-$off point with

no further processing; super and hioctane require further processing before they can be sold; super is

processed in Department B; and hioctane is processed in Department C$.$ The following is a summary of

costs and other related data for the year ended December $31,2014$:

There were no inventories on hand at January $1,2014,$ and there was no Petroleum Raw Material on hand at

December $31,2014.$ All of the year's output was sold. Proprietor uses the market value at split$-$off point to

allocate joint cost.

Required: The gross profit for each product, allocating the joint cost by the market value method.The PSO buys petroleum raw material Rs$\mathrm{.}1\mathrm{.}20$ a liter. At the end of processing in department A$,$ Petroleum product split off into three product$$s$,$ regular, super, and hioctane. Regular is sold at the split$-$off point with no further processing; super and hioctane require further processing before they can be sold; super is processed in Department B; and hioctane is processed in Department C$.$ The following is a summary of costs and other related data for the year ended December $31,2014$:

Department

A B C

Petroleum Raw Material Rs$\mathrm{.}1,63,200----$

Direct Labour $18,000$ Rs$\mathrm{.}50,000$ Rs$\mathrm{.}58,000$

Factory Overhead $840015,00052,000$

Product

Regular Super Hi$-$Octane

Liter Sold $36,00040,00060,000$

Sales $($in Rs$.)$ Rs$\mathrm{.}81,000$ Rs$\mathrm{.}1,40,000$ Rs$\mathrm{.}270,000$

There were no inventories on hand at January $1,2014,$ and there was no Petroleum Raw Material on hand at December $31,2014.$ All of the year$$s output was sold. Proprietor uses the market value at split$-$off point to allocate joint cost.

Required: The gross profit for each product, allocating the joint cost by the market value method.