Question

Tutorial 2 Question 1 (14 Marks – 25 Minutes) Supp 2013 NovDischem CC manufactures three products in a single process. Thefollowing are the actual results for April 2013: A B C Units UnitsUnits Production at 100% capacity 20 000 25 000 10 000 Sales 20 00025 000 10 000 There was no inventory on hand at the beginning ofthe month and no losses occurred during the month. A B C Sellingprice per unit N$12.00 N$8.00 N$16.00 The following costs areincurred in the joint process: Direct material N$224 400 Directlabour 93 500 Manufacturing overheads 149 600 Each product can beprocessed further into a superior product namely A2, B2, and C2.The following information is applicable if products are processedfurther: A2 B2 C2 N$ N$ N$ Selling price per unit 18.00 12.00 22.00Additional variable cost per unit: - Direct labour 1.50 2.00 2.00 -Variable overhead 1.00 1.00 2.00 REQUIRED: MARKS Allocation of thejoint costs to the three products using the following method ofallocation: 1.1 Physical measures method 5 1.2 Net realisable valuemethod 9