Topic: Performance management

Question 3 Champs Ltd produces three joint products 'om a common process and each of the main product can be further processed separately after the split-off point. The estimated data for the month of March 2021 is given below. Selling Price per unit at split-off point Selling Price per unit after further processing Further processing costs in total $40, 000 $50, 000 $45, 000 Output (Units) 8, 000 7, 000 5,000 Joint processing costs incurred up to split-off point are estimated to be $500,000 and the company's current practice is to apportion these costs based to units produced. Required: a) Analyze the above information and prepare a statement of estimated prot or loss for each product and in total for the month of March 2021, if the company has decided to further process all three products. Comment briey your findings. (6 marks) b) Advise how prots could be maximized if one or more products are sold at the split-off point. Your advice should be supported by relevant calculations and statements. (11 marks) C) Discuss whether the apportionment of joint process costs to each of the joint products is useful in the decision-making process. (3 marks) (Total: 20 marks)