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Question 2 (15 Marks, 27 Minutes) The Pintop Co is a manufacturer operating a production process that requires 800 kg of raw material point. A
Question 2 (15 Marks, 27 Minutes) The Pintop Co is a manufacturer operating a production process that requires 800 kg of raw material point. A singular process yields two products, Pin and Top at a rate of 45% and 55% of input, respectively. Pin sells for N$2 and Top sells for N$1.25 per gram at split off point Material is acquired at N$0.25 per gram and conversion is N$ 200 000. The company is considering processing Pin further into Pinup; this will require 10 grams of Material up per unit which costs the same as point. The required conversion is considered insignificant and Pinup can sell for N$4.35 in the market. Marks REQUIRED: 3.5 2.1 9 2.5 Calculate the total joint cost. 2.2 Allocate joint costs according to the Sales value at split off method. 2.3 Help Pintop Co decide whether to process Pin further or not. TOTAL MARKS FOR QUESTION 2 15
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