SUBJECT:COST ACCOUNTING

Q.3 The ABC Company operates a simple chemical process to convert a single material into three separate items, referred to here as X, Y, and Z. All three end products are separated simultaneously at a single split-off point. Products X is ready for sale immediately upon split-off without further processing or any other additional costs. Product Y and Z, however, are processed further before being sold. There is no available market price for Y and Z at the split-off point. The selling prices quoted here are expected to remain the same in the coming year. During 2019, the selling prices of the items and the total amounts sold were as follows:

X100 tons sold for Rs.1,800 per ton

Y200 tons sold for Rs.1,300 per ton

Z250 tons sold for Rs.800 per ton

The total joint manufacturing costs for the year were Rs.350,000. ABC spent an additional Rs. 50,000 to finish product Y and Rs.100,000 to finish product Z. There were no beginning inventories of X, Y, or Z. At the end of the year, the following inventories of completed units were on hand: X, 150 tons; Y, 100 tons; Z, 100 tons. There was no beginning or ending work in process

. Required: Compute the cost of inventories of X, Y, and Z for balance sheet purposes and the cost of goods sold for income statement purposes as of December 31, 2019, using NRV method as joint cost allocation method.