Royston Inc. is a large food processing company. It processes 150 000 kg of peanuts in...

 

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Royston Inc. is a large food processing company. It processes 150 000 kg of peanuts in the Peanuts Department at a cost of R180 000 to yield 12 000 kg of Product A, 65 000 kg of Product B and 16 000 kg of Product C. Product A is processed further in the Salting Department to yield 12 000 kg of Salted Peanuts at a cost of R27 000 and sold for R120 per kg Product B is sold as Raw Peanuts (without further processing) at R30 per kg 9500 Product C is processed further in the Paste Department to yield 16 000 kg of Peanut Butter at a cost of R12 000 and sold for R60 per kg Required: 1.1 Distribute the joint costs to the different final products using the net realizable value method. (6) 180000 126kg A 270000 B C' 120000 Royston Inc. is a large food processing company. It processes 150 000 kg of peanuts in the Peanuts Department at a cost of R180 000 to yield 12 000 kg of Product A, 65 000 kg of Product B and 16 000 kg of Product C. Product A is processed further in the Salting Department to yield 12 000 kg of Salted Peanuts at a cost of R27 000 and sold for R120 per kg Product B is sold as Raw Peanuts (without further processing) at R30 per kg 9500 Product C is processed further in the Paste Department to yield 16 000 kg of Peanut Butter at a cost of R12 000 and sold for R60 per kg Required: 1.1 Distribute the joint costs to the different final products using the net realizable value method. (6) 180000 126kg A 270000 B C' 120000