Khemikhale Ltd produces chemicals RFV and NJU during a joint production process. A by-product namely AAA, is also produced during this process. The following costs are incurred during the joint production process before the split-off point: Cost Raw materials Labour cost Manufacturing overhead cost Non-manufacturing overhead cost R R2 000 000 R1 300 000 R3 500 000 R700 000 In addition, the following information is provided • There was no opening or closing inventory of any kind. • Product RFV is sold directly after split-off. • Product NJU requires further processing into product NJL at a cost of R120 000 before it is in a sellable condition. No increase or decrease in volume occurs during this further processing. • The total output for Product AAA was sold for R50 000 and the related selling cost was R10 000. • 450 000 litres of product RFV, 300 000 litres of product NJL and 50 000 litres of product AAA were produced. ⚫ Joint costs are allocated to joint products using the physical measure method. The total joint cost to be allocated to joint products is Select one: a. R6 760 000 b. None of the options ○ c. R7 500 000 d. R6 800 000 e. R6 845 000
Khemikhale Ltd produces chemicals RFV and NJU during a joint production process. A by-product namely AAA, is also produced during this process. The following costs are incurred during the joint production process before the split-off point: Cost Raw materials Labour cost Manufacturing overhead cost Non-manufacturing overhead cost R R2 000 000 R1 300 000 R3 500 000 R700 000 In addition, the following information is provided • There was no opening or closing inventory of any kind. • Product RFV is sold directly after split-off. • Product NJU requires further processing into product NJL at a cost of R120 000 before it is in a sellable condition. No increase or decrease in volume occurs during this further processing. • The total output for Product AAA was sold for R50 000 and the related selling cost was R10 000. • 450 000 litres of product RFV, 300 000 litres of product NJL and 50 000 litres of product AAA were produced. ⚫ Joint costs are allocated to joint products using the physical measure method. The total joint cost to be allocated to joint products is Select one: a. R6 760 000 b. None of the options ○ c. R7 500 000 d. R6 800 000 e. R6 845 000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Khemikhale Ltd produces chemicals RFV and NJU during a joint production process. A by-product
namely AAA, is also produced during this process.
The following costs are incurred during the joint production process before the split-off point:
Cost
Raw materials
Labour cost
Manufacturing overhead cost
Non-manufacturing overhead cost
R
R2 000 000
R1 300 000
R3 500 000
R700 000
In addition, the following information is provided
• There was no opening or closing inventory of any kind.
• Product RFV is sold directly after split-off.
• Product NJU requires further processing into product NJL at a cost of R120 000 before it is in a
sellable condition. No increase or decrease in volume occurs during this further processing.
• The total output for Product AAA was sold for R50 000 and the related selling cost was R10 000.
• 450 000 litres of product RFV, 300 000 litres of product NJL and 50 000 litres of product AAA were
produced.
⚫ Joint costs are allocated to joint products using the physical measure method.
The total joint cost to be allocated to joint products is
Select one:
a. R6 760 000
b. None of the options
○ c.
R7 500 000
d. R6 800 000
e.
R6 845 000
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