QUESTION 1 Taste of Fusion produces orange juice and orange marmalade from a joint process. Second- stage processing of the marmalade creates an orange pulp by-product that can be sold for RM0.05 per litre. Expenses to distribute pulp total RM90. In May 2019, 140,000 litres of oranges costing RM44,200 were processed in Department 1, with labour and overhead costs of RM33,800 incurred. Department 1 processing resulted in 56,000 litres of output, of which 40 percent was transferred to Department 2 to become orange juice and 60 percent was transferred to Department 3. Of the input going to Department 3, 20 percent resulted in pulp and 80 percent resulted in marmalade. Joint cost is allocated to orange juice and marmalade on the basis of approximated net realizable value at split-off. The orange juice in Department 2 was processed at a total cost of RM9,620; the marmalade was processed at a total cost of RM6,450. The net realizable value of pulp is accounted for as a reduction in the separate processing costs in Department 3. Selling price per litre are RM5.25 and RM3.45 for orange juice and marmalade, respectively. Required: a) Why is cost allocation necessary in accounting? Explain. (2 marks) b) Calculate how many litres leaving Department 1 were sent to Department 2 and Department 3 for further processing as orange juice and marmalade. (2 marks) c) Calculate how many litres of Department 3 outputs as pulp and marmalade. (2 marks) d) Compute the net realizable value of pulp. (3 marks) c) Compute the total approximated net realizable value of orange juice and marmalade. (6 marks) ) What amount of joint cost is assigned to orange juice and marmalade? (4 marks) g) If 85 percent of the final output of each product was sold during May and Taste of Fusion had no beginning inventory of either product, what is the value of the ending inventory of orange juice and marmalade? (6 marks)