Question 3 (20 marks) HDF Ltd manufactures two granular weed poisons Nox and Pes from a joint process. It costs $45,600 to process 500 kg of Nox and 1,000 kg of Pes in the joint process. The sales prices of the joint products at split-off are: Nox $60/kg and Pes $30/kg. Pes is further processed at an additional cost of $10,000 before being sold as a liquid poison "Liqui-pes" for $25/litre. One kg of Pes converts to two litres of Liqui-pes in this separable process. Sales of Nox and Liqui-pes for the period are 500 kg and 1600 litres respectively. Required: (a) Use the physical measures method to allocate the joint costs to Nox and Pes/Liqui-pes and then determine the cost per unit of Nox and Liqui-pes that would be recorded in inventory (before any sales). (4 marks) (b) Using the Sales Value @ Split-off method to allocate the joint costs, determine the inventoriable cost of 2,000 litres of Liqui-pes? (4 marks) (c) Should Pes be sold for $30/kg $14/kg or should it be further process into Liqui- pes? Show your working to support your answer. (3 marks) (d) Unrelated to the above requirements, assume there are 200 kg of a third output (Tox) produced from the joint process. Tox is recognised as a by-product and can be sold for $2.30/kg after it is packaged at a cost of $0.30/kg. Using the production method for the byproduct and NRV for the joint products, determine the joint cost that would be allocated to the joint products