Question 3 (17 Marks) Omega Oil Refinery manufactures vegetable oil from sun-flower plants and refines the Crude vegetable oil. The refining process results in four products at the split off: Crude Sweet, Crude Vigar, Crude Chilly and Fibra. Fibra is fully processed at the split off. Crude Sweet, Crude Vigar, and Crude Chilly can be individually be further refined into Sun Sweet, Sun Vigar and Sun Chilly respectively. The joint costs of crushing and processing sunflower to crude vegetable oil was N$ 2 100 000 Omega Refinery had no beginning and ending inventories. Omega Refinery has the option of selling all four products at the split off point. This alternative would yield the following sales for October 2020 production. Products N$ Crude Sweet @N$10 each 1 000 000 Crude Vigar @N$12 each 600 000 Crude Chilly @N$7 each 1 400 000 Fibra @N$20 each 1 000 000 The following data relates to sales of the refined products in October 2020: Products Sales N$ Further process costs to make super products N$ 4 000 000 1 800 000 1 800 000 Sun Sweet Sun Vigar Sun Chilly 6 000 000 2 000 000 2 800 000 MARKS 10 7 REQUIRED: 3.1 Allocate joint costs according to the physical measure method. 3.2 Determine whether the entity should process Crude Vigar into Sun Vigar. TOTAL MARKS 17