QUESTION 1 PART A Teguh Bersama provides personal training service for, and sells apparel products to, its client. Teguh Bersama also generates a limited amount of revenue from the sale of protein drinks. The net realizable value from drink sales is accounted for as a reduction in the joint cost assigned to the Personal Training Services and Apparel Products. Protein drinks sell for RM2.50 per bottle. The costs associated with making and packaging the drinks are RM1.00 per bottle.

Joint cost is to be allocated to Personal Training Services and Apparel Products based on net realizable value. For 2021, total revenues were RM758,000 from Personal Training Services and RM294,000 from Apparel. The following joint costs were incurred:

RM Rent 41,000 Insurance 48,750 Utilities 8,000 Separate costs were as follows: Personal Training (RM) Apparel (RM) Labour 236,000 41,000 Supplies 156,300 1.200 Equipment depreciation 170,000 6.200 Administration 108,000 8.700 For the year, 2,500 bottles of protein drinks were sold