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QUESTION 2 ( 2 6 Marks ) The question consists of two unrelated parts. PART A ( 1 6 Marks ) The following summary indicates
QUESTION
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The question consists of two unrelated parts.
PART A
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The following summary indicates the selling prices, costs, and output of joint products and from a manufacturing process:
tableProduct XProduct YSelling price per kgRRShare of joint costs per kgRRProfitRROutput kilograms
Further processing cost
Although Product can be processed further, both products can be sold at the splitoff point. To further process Product the new selling price and related costs are as follows:
tableSelling price,R per kgFurther processing cost,R per kg
REQUIRED:
Calculate the total joint costs for Products and and state which method was used to apportion the joint costs.
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Advise whether Product should be processed further. Support your answer with the relevant calculations.
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