Required:

a. Prepare a statement to allocate to Dept. 1 costs to the joint products using the relative sales value method

b. Prepare a columnar trading statement showing for all products, sales, the cost of goods sold, and the gross profit.

Joint & By Product Questions Part A Output from a Joint Process is: Units Product A Product B Product C 20000 15000 10000 Selling Price (per unit) $3.00 $2.00 $1.00 Cost of the Joint Process are $45000 Required: The total costs to be attached to each of products A, B and C using the: a. Net Realisable value of each to allocate the Joint Cost. b. Physical Units value of each to allocate the Joint Cost for A, B and C. Part B Antrim Company is under special contract with a space craft agency to manufacture rocket fuels. Two products, RFA and RFZ emerge from processing in Dept. 1. A by-product RFBI is also produced in the manufacturing process. RFA cannot be sold without further processing. This is carried out in Dept. 2. RFZ can be sold at the split off point for $13 per litre, but is presently further refined in Dept. 3. Details of production and costs incurred during the current period are outlined: Added Costs Conversion Department Material (S) Costs (5) 1 $45000 $31000 2 $6000 $10000 3 $12000 $14000 Product Sales Liters Market Price RFA RFZ RFBI Production Liters 3000 7000 1000 2800 6500 900 $22.00 $18.00 $2.00 The net realizable value of RFBI is credited to Dept. I costs after allowing $300 for Administrative costs and $300 for Selling Costs all of which are considered variable. A net profit of 20% on sales value must also be achieved