Question 6 (a) A company manufactures to customer order and operates a job costing system. Job Alpha remained incomplete at the end of April 2017 with the following production costs incurred: Prime costs 6,540 Overheads 4,335 The following costs relate to jobs worked on in May 2017: Job Alpha Job Beta Direct materials Issued from stores 2,490 12,360 Returned to stores (705) Transferred between the two jobs (270) 270 Direct labour 1,080 5,535 Direct labour is paid at a rate of 9.00 per hour. Production overheads are absorbed at a rate of 17.50 per direct labour hour. 10% of the total production cost of each job is added in order to recover general administration costs. Job Alpha was completed in May 2017 and the customer paid the agreed sum of 20,100 Requirement: (a) ) Prepare a profit statement for Job Alpha. 3 marks (11) Calculate the value of work-in-progress for Job Beta at the end of May 2017. 5 marks (b) Two products Slight and Tight are created from a joint process. Slight can be sold immediately after split-off. Tight requires further processing into product Just Right, before it is in a saleable condition. There were no opening inventories and no work in progress of products, Slight, Tight or Just Right The following data are available for the last period: Total joint production costs 600,000 Further processing costs of product Tight 120,000 Product Production units Closing inventory Slight 525,000 75,000 Tight 275,000 35,000 Requirement: (b) ( Using the physical units method for apportioning joint costs, what was the euro value of the closing inventory of the product Just Right for last period? 4 marks (i) If the ultimate sales value after further processing of all Tight into final product Just Right was 6 per unit and the sales value at the split off point was 5 for Slight, compute the apportionment of joint cost to products Slight and Tight and the euro value of the closing inventory of Just Right, using the net realizable value method 6 marks