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Question 13 (35 points) Sweet Golden Inc produces three products X(15,000 units), Y(10,000 units ),Z(25,000 units). Each product can be sold at split off: X

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Question 13 (35 points) Sweet Golden Inc produces three products X(15,000 units), Y(10,000 units ),Z(25,000 units). Each product can be sold at split off: X ( $5 per unit), Y ( $7.5 per unit) and Z ( $6 per unit). All three products can be further processed to make XX,YY, and ZZ. A fourth product, A, is a by-product of the production process. Product A can be sold for $1 per unit with additional processing. A is processed at splitoff point. At all times by-products are assigned joint cost based on NRV. During April the joint costs of production were $207,500. Production, additional processing costs, and sales value after additional processing information for the month are as follows: Required: a. Determine the amount of joint cost allocated to each product if allocation is by NRV of final product. (14 marks) b. Sales value at splitoff. ( 9 marks) c. Determine the amount of joint cost allocated to each product if allocation is by Constant gross margin percentage NPV method ( 8 marks) d. Explain in your own words why a company allocates joint costs to individual products or services?(4 marks)

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