QUESTION 3 115 Jatropha Namibian Products (UNP) is a company that processes jatropha plant seeds into bio diesel, blo kerosene, cosmetics and pesticides The JNP process uses jatropha seeds that are bought from farmers in the SADC region. Because of the diversity of suppliers, the seeds delivered are not of the same quality. However production of biodiesel and bio kerosene requires high quality jatropha seeds. This causes JNP to first do a grading of all the seeds procured. The grading process results in a yield of 90% and poor quality seeds at 5%. The rest are impurities that are considered normal losses. The grading process costs N$7 000 per month and N$0.10 per kilo ol jatropha seeds graded. The poor quality seeds are processed further at a cost of N52 per kilo into cosmetic paste that is sold for N53 per kilo. After the grading, the high quality seeds are then ground to prepare them for extraction of bio diesel and bio kerosene. Aliquafying chemical is applied to the ground seeds and the cost of this chemical is N$20 per litre. Two litres of the chemical are required for every 1 000 kilos of ground seeded cooking oil. Since this chemical is a dissalving chemical, it does not add to the weight of the ground seeds. Other costs incurred in the processing department is fixed manufacturing overheads of N$10 000 per month. The average output from the processing department is 40% bio diesel and 60% blo kerosene. The bio diesel is sold as is to clients at N$5 per litre while the bio kerosene must be processed further to make it super refined for use in jet engines The costs relating to the further processing of bio kerosene amount to N$0,30 per litre and the output of the further processing is 90% of refined bla kerosene, which is sold at N$4.50 per litre 10% of the output is a waste product that is sold at N$5 per litre as a pesticide after further processing costs of N$3 per litre and fixed cost of N$9.977 per month has been incurred. It is company policy to value inventory on the basis of First In, First Out (FIFO) and to deduct the net realisable value (NRV) of by products from the joint productions costs. Joint costs are allocated to joint products using the NRV method The following transpired in the month of September 2021 500 000 kilo of Jatropha seeds were purchased at N$0,50 per kilo. Dan 37 The sales were follows Hlio-diesel 180 000 litre Refined bio korne 250 000 litre Cosmetic paste (by product) 20 000 litre Pesticides (by product) 25 000 litre Note: 1 kilo = 1 litre, therefore 1 000 kilos of input (Jatropha seeds) yield 1 000 litres of output. The only opening inventory was 30 000 litres of bio kerosene valued at No.80 per litre. There was no beginning or closing Inventory work-in-process on hand REQUIRED: Marks Sub- Total Total 9 9 2 11 3.1 Prepare a schedule showing the joints costs allocated to the joint products for September 2021 3.2 Determine the production cost per unit for each of the two joint products for September 2021 (round to two decimal places) 3.3 Calculate the gross profit por joint product for September 2021 (round total values to the nearest NS) Total 4 15 15