TopHam Ltd manufactures two products (Top and Ham) from a joint process each month. The total monthly costs of the joint process amounted to R400000. In addition, 5000 kilograms of a by-product are produced. This by-product can be sold for R9 per kilogram after further processing of R6 per kilogram. Further, 1900 kilograms of toxic waste is also produced by the process which needs to be disposed of at a cost of R11 per kilogram. What is the total cost that needs to be allocated between the joint products?
TopHam Ltd manufactures two products (Top and Ham) from a joint process each month. The total monthly costs of the joint process amounted to R400000. In addition, 5000 kilograms of a by-product are produced. This by-product can be sold for R9 per kilogram after further processing of R6 per kilogram. Further, 1900 kilograms of toxic waste is also produced by the process which needs to be disposed of at a cost of R11 per kilogram. What is the total cost that needs to be allocated between the joint products?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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TopHam Ltd manufactures two products (Top and Ham) from a joint process each month. The total monthly costs of the joint process amounted to R400000. In addition, 5000 kilograms of a by-product are produced. This by-product can be sold for R9 per kilogram after further processing of R6 per kilogram. Further, 1900 kilograms of toxic waste is also produced by the process which needs to be disposed of at a cost of R11 per kilogram. What is the total cost that needs to be allocated between the joint products?
a.
R394100
b.
R405900
c.
R435900
d.
R364100
e.
R400000
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