XYZ Ltd processes and purifies a basic chemical which is then broken down by reaction to give three separate products. Explain the approaches to joint cost allocation using the following information:

Joint costs incurred up to the split-off point are £2,000.

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Product ABC Units produced 3,000 1,000 2,000 Final market value per unit () 5.00 4.00 3.00 Costs beyond split-off point () 4,000 1,800 2,400