allocation: 1.1 Physical measures method 1.2 Net realisable value method 5 9 Page 14 of 71 Question 2 (16 Marks - 29 Minutes) Normal 2013 Nov Iyaloo Limited manufactures two joint products, Product A and Product B in a single process. An input of 20 000 kilograms of raw materials that is used in the process produces 1200 units of Product A and 800 units of Product B. The cost price of the raw material is NS60,00 per kilogram. Both products can either be sold at the split-off point or processed further. All the products manufactured can be sold. The budgeted costs for an input of 100 000 kilograms raw material for August 2013 are as follows: Fixed costs (Total) Variable costs NS NS Joint costs - Excluding cost of raw material 450 000 45.00 per kg input Costs after split-off point: - Product A - Fixed costs 110 000 Product A - Variable costs 150.00 per unit Product B - Fixed costs 110 000 - Product B - Variable costs 225.00 per unit At split-off point The estimated selling prices are as follows: Product A Product B NS 1 650.00 1 250.00 After product was processed further NS 2 250.00 2 625.00 MARKS REQUIRED: Calculate the budgeted profit for each product for August 2013 if both products are processed further and the net realisable value is used to allocate the joint costs. 16 Question 3 (10 Marks - 18 Minutes) -Regular Exam 2015 Organik CC manufactures three milk based drinks Strawberry, Vanilla and Chocolate that is sold to hotels and lodges. Milk the main raw material is initially processed in department and is then split to undergo further processing as follows: (0) in department to produce Strawberry, (ii) in department R to produce Vanilla. (iii) in department Sto produce Chocolate. Page 15 of 71 There is no loss in further processing of milk to produce these products. The cost data for July 2015 is as follows: : Cost of milk introduced in department PNS 1 268 800 allocation: 1.1 Physical measures method 1.2 Net realisable value method 5 9 Page 14 of 71 Question 2 (16 Marks - 29 Minutes) Normal 2013 Nov Iyaloo Limited manufactures two joint products, Product A and Product B in a single process. An input of 20 000 kilograms of raw materials that is used in the process produces 1200 units of Product A and 800 units of Product B. The cost price of the raw material is NS60,00 per kilogram. Both products can either be sold at the split-off point or processed further. All the products manufactured can be sold. The budgeted costs for an input of 100 000 kilograms raw material for August 2013 are as follows: Fixed costs (Total) Variable costs NS NS Joint costs - Excluding cost of raw material 450 000 45.00 per kg input Costs after split-off point: - Product A - Fixed costs 110 000 Product A - Variable costs 150.00 per unit Product B - Fixed costs 110 000 - Product B - Variable costs 225.00 per unit At split-off point The estimated selling prices are as follows: Product A Product B NS 1 650.00 1 250.00 After product was processed further NS 2 250.00 2 625.00 MARKS REQUIRED: Calculate the budgeted profit for each product for August 2013 if both products are processed further and the net realisable value is used to allocate the joint costs. 16 Question 3 (10 Marks - 18 Minutes) -Regular Exam 2015 Organik CC manufactures three milk based drinks Strawberry, Vanilla and Chocolate that is sold to hotels and lodges. Milk the main raw material is initially processed in department and is then split to undergo further processing as follows: (0) in department to produce Strawberry, (ii) in department R to produce Vanilla. (iii) in department Sto produce Chocolate. Page 15 of 71 There is no loss in further processing of milk to produce these products. The cost data for July 2015 is as follows: : Cost of milk introduced in department PNS 1 268 800