QUESTION $2(10$ Marks$)$

$2\mathrm{.}1$ Study the information provided below and answer the following question.

INFORMATION

M&M Enterprises, a food processor, produces two products, X and Y$,$ from a single joint process. Both products require

further processing after the split$-$off point to become saleable. For Product X$,$ each unit that emerges at the split$-$off point

is divided and packaged into two identical units after the addition of extra materials. In contrast, each unit of Product Y is

processed further to yield three identical units. There are no opening inventories or work in progress for either product.

The following data is available for the last period:

Total joint production costs up to split$-$off point R$3400000$

Further processing costs of product X R$400000$

Further processing costs of product Y R$500000$

Products Units produced after further processing Units of closing after further processed inventory

X $42000020000$

Y $33000030000$

REQUIRED:

Using the physical unit method for apportioning joint production costs, calculate the total cost of sale for

products X and Y for last period.

$(6$ Marks$)$

$2\mathrm{.}2$ Review the details provided below and answer the following question.

INFORMATION:

Two products $($Alpha and Beta$)$ are created from a joint process at a total joint production cost of R$1,980,000.$ Both

products are sold immediately after split$-$off. There are no opening inventories or work in progress. The following

information is available for last period:

Product Production units Sales Units Selling price per unit

Alpha $1200010000$ R$120$

Beta $100008000$ R$130$

REQUIRED:

Using the market value method of apportioning joint production costs, determine the Gross profit of both

products.

$(4$ Marks$)$