QUESTION $2(20$ Marks$)$

$2\mathrm{.}1$ Study the information provided below and answer the following questions.

INFORMATION

During July $2023,$ Neoplan Limited processed a basic raw material through a manufacturing process that

yields three products $$ products X$,$ Y and Z$.$ The joint cost amounts to R$1500000.$

The production outputs are as follow:

$$ Product X yields $4000$ units

$$ Product Y yields $8000$ units

$$ Product Z yields $2000$ units

Product X is processed further at an additional cost of R$250000$ and sold thereafter at R$190$ per unit

Product Y is processed further at an additional cost of R$500000$ and sold thereafter at R$220$ per unit

Product Z is processed further at an additional cost of R$200000$ and sold thereafter at R$250$ per unit.

REQUIRED:

$2\mathrm{.}1\mathrm{.}1$ Using the market values at split$-$off point, determine the allocated joint cost for Products X$,$ Y and Z$.(6$ Marks$)$

$2\mathrm{.}1\mathrm{.}2$ Assuming that Products X$,$ Y and Z are all sold after further processing and that there is no closing

inventory, prepare a statement of profit and loss to show the gross profit for Neoplan Limited.

$(10$ Marks$)$

$2\mathrm{.}2$ Using the information provided below, answer the following question.

GKL Enterprises manufactures two products A and B from a joint process. A can be sold immediately after split$-$off. B

requires further processing into B$+$ for it to be saleable. There are no opening inventories and no work in progress of

products A$,$ B or B$+.$

The following data are available for the previous period:

Total joint production costs R$700000$

Further processing costs of product B R$198000$

Product Production output $($units$)$ Closing inventory $($units$)$

A $84000040000$

B$+66000060000$

REQUIRED:

Using the physical unit method for apportioning joint production costs, determine the value of the closing

inventory of products A and B$+$ for the previous period $($Round off answers to two decimal places$).$

$(4$ Marks