Required: From the information given below calculate the following: 1. Allocation of joint cost using sales vale method. 2. Allocation of joint cost using the net realisable value (NRV) method. Canada Manufactures produces two types of food products from raw milk: full-cream and Half-cream milk. The two products share common or joint cost. In September 2020, the following Information were recorded regarding the production and sales of the company: Joint cost 275 000 liters of raw mild was produced for: $1 000 000 Products: Full-cream milk Half-cream milk liters liters Opening inventory 0 0 Production 62 500 187 500 Closing inventory Sales 50 000 75 000 Selling price per liter $20 $10 Canada Manufacturers has the option of further production of the joint products into full- cream ice cream and half-cream ice cream. The following information is available for further production: Joint cost 275 000 liters of raw milk was produced $1 000 000 Full-cream Ice Cream Half-cream Ice Cream Separable processing cost $700 000 $1 300 000 Full-cream milk 0 62 500 62 500 Half-cream milk 0 187 500 187 500 Full-cream Ice Cream 0 50 000 Half-cream Ice Cream 0 125 000 Opening inventory Production in liters Transferred for further production Closing inventory Sales Selling price per liter 20 000 30 000 $62.50 12 500 112 500 $55 Answer: 1. Panol A: Allocation of joint cost using sales value at seltof method Full-cream Half-cream milk Total Panel B: Product-line Income statement Full-cream Half-cream Total 2. Panel A: Allocation of joint cost using net realisable value method Full-cream Ice Cream Half-cream Ice Cream Total Panol B: Product line income statement Ful-cream Ice Cream Hal-cream Ice Cream Total