Required (Show all workings) -

(a) Determine the total cost per unit of each of the products using the physical method. (1 mark) (b) Determine the total cost per unit of each of the products using the net realisable value method. (3 marks) (c) Determine the total cost per unit of each of the products using the constant gross margin method. (d) Wiser could be further processed into Xcellor for an additional cost of $20.00 per unit. Xcellor would sell for $33.00 per unit. Should the company produce Xcellor? Show the necessary computation to justify your decision.

Universe Ltd. manufactures the joint products, Victor and Wiser. Victor sells for $7.50 per unit, whereas Wiser sells for $16 per unit. The 2 products require further processing beyond the split-off point. The following information relates to the 2 products : Production (units) Separable costs Victor 300,000 $300,000 Wiser 250,000 $1,400,000 Total joint processing costs were $700,000