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Sun snack is produced from Seedlings which are one of two raw materials jointly produced by passing the raw harvest through various roasting procedures. Other
Sun snack is produced from Seedlings which are one of two raw materials jointly produced by passing the raw harvest through various roasting procedures. Other details relating to the entity's production process are the following: Output: Seedlings Seed roast Joint costs: 18 000 kg 20 000 kg Raw material (at N$ 1.5 per kg of output) Conversion costs N$ 63 000 Seedlings may be sold at split off point for N$2.50 per kg and Seed roast is sold without further processing for N54.00 per kg. Production costs incurred in converting Seedlings into Sun snack are N$1.15 per kg of Seedlings used. Each kilogram of Sun snack requires 1.5 kg of seedling. Sun snack is sold for NS8 per kg. REQUIRED MARKS 6.1 By allocating the joint cost according to the sales value at split off method, calculate the profitloss of Seedlings and Seed roast, respectively. 5 Page 18 of 71 6.2 Allocate the joint costs to the Constant gross profit percentage method 5
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