An international designer produces three (3) jewellery designer items using a joint process. Total joint costs amount
Question:
An international designer produces three (3) jewellery designer items using a joint process.
Total joint costs amount to R650 000. The three products are A, B and C. the output details are as follows:
Product A 120 units
Product B 108 units
Product C 112 units
Each product can be sold at the split-off point. The sales values at the split-off point are as follows:
Product A R2 500 per unit
Product B R2 000 per unit
Product C R2 225 per unit
Alternatively, further processing or each individual product can be undertaken to produce an enhanced product thus:
Required: Prepare a statement of profit or loss for the company if all three products are processed further and then sold. Assume that there is no opening or closing inventory. It is the company’s policy to allocate joint costs to the products using the market value at the split-off point. (Note: round off all amounts to the nearest R1)
Expert Answer:
Statement of profit and loss for the company if all the three products are further processed and the... View the full answer
Digital Systems Design Using Verilog
ISBN: 978-1285051079
1st edition
Authors: Charles Roth, Lizy K. John, Byeong Kil Lee
