Question 2 (16 Marks - 29 Minutes) Normal 2013 Nov Iyaloo Limited manufactures two joint products, Product A and Product B in a single process. An input of 20 000 kilograms of raw materials that is used in the process produces 1200 units of Product A and 800 units of Product B. The cost price of the raw material is N$60,00 per kilogram. Both products can either be sold at the split-off point or processed further. All the products manufactured can be sold. The budgeted costs for an input of 100 000 kilograms raw material for August 2013 are as follows: Fixed costs (Total) Variable costs N$ N$ Joint costs - Excluding cost of raw material 450 000 45.00 per kg input Costs after split-off point: Product A - Fixed costs 110 000 - Product A - Variable costs 150.00 per unit Product B - Fixed costs 110 000 Product B - Variable costs 225.00 per unit At split-off point After product was processed further The estimated selling prices are as follows: N$ N$ Product A 1 650.00 2 250.00 Product B 1 250.00 2 625.00 REQUIRED: MARKS Calculate the budgeted profit for each product for August 2013 if both products are processed further and the net realisable value is used to allocate the joint costs. 16