Two types of plastic piping are produced in a joint production process. UB-1 may be sold immediately after split-off. UB-2 requires further processing before it is ready for sale. There is no opening inventory. The following production data are available:

Total joint cost K80 000

Additional cost of processing UB-2 K38 400

Sales quantity (metres)	sales price (metres)	closing inventory (metres)
UB-1 200 000	K0.30	8 000
UB-2 180 000	K0.40	12 000

Required:

a). calculate the cost of closing inventory using the final sales revenue method of joint cost

allocation to the nearest K100. (5 Marks)

Joint products Output (kg) Selling price per kg

10. 5 000 K10

25. 10 000 K4
26. 10 000 K3

Joint costs are K100 000

Required:

b). calculate the profit per unit after apportioning joint costs on the basis of physical quantity for

each product (10 Marks)

c). calculate the total profits of all products after apportioning joint costs on the basis of sales value.