Question # 3

Victory Ltd manufactures three products A, B and C from a joint process. The joint cost amount to Rs.600,000. Additional information is as follows:

Additional cost and market Value if processed further Product Units produced Market value at Additional Market Split of point (Rs.) cost (Rs.) value (Rs.) A 6,000 400,000 90,000 550,000 B 4,000 350,000 70,000 450,000 C 2,000 250,000 50,000 300,000

Required: Total cost of each product using average unit cost method Total cost of each product using market value method.