3/6QUESTION 3 (8 marks)Universe Ltd. manufactures the joint products, Victor and Wiser. Victor sells for$7.50 per unit, whereas Wiser sells for $16 per unit.The 2 products require further processing beyond the split-off point. The followinginformation relates to the 2 products :Production (units)Separable costsVictor300,000$300,000Wiser250,000$1.400,000Total joint processing costs were $700,000.Required :(a) Determine the total cost per unit of each of the products using the physicalmethod. (Show all workings. You may prepare your workings using WORD orEXCEL)(1 mark)(b) Determine the total cost per unit of each of the products using the netrealisable value method. (Show all workings. You may prepare your workingsusing WORD or EXCEL)(3 marks)(c) Determine the total cost per unit of each of the products using the constantgross margin method. (Show all workings. You may prepare your workingsusing WORD or EXCEL)(2 marks)(d) "Wiser" could be further processed into "Xcellor" for an additional cost of $20.00per unit. "Xcellor" would sell for $33.00 per unit. Should the company produce"Xcellor"? Show the necessary computation to justify your decision. (Show allworkings. You may prepare your workings using WORD or EXCEL)(2 marks) Peaceful Ltd. manufactures a single product, which passes through the FormingDepartment and Packing Department.Manufacturing begins in the Forming Department. All units are then transferred toPacking Department.In the Packing Department, further materials are added and processed untilcompletion, and transferred to the finished goods inventory. Overhead is allocated onthe basis of 140% of direct labour cost.Work in process in the Packing Department on 1 Aug was 90,000 units (Materials :40% complete; Conversion : 60% complete). The costs included in these units were asfollows :Forming Department costsPacking Department: Direct materials: Direct labour:Overheads$1,395,000$396,000$1,192,500S?During the month, the Packing Department completed and transferred 180,000 unitsto finished goods inventory. Units transferred in from Forming in Aug were chargedat $21.50 per unit. Packing Department's costs in Aug were :Materials added during the monthDirect labour for the month$1,875,000$3,392,500S?OverheadsThe ending work in process for Packing Department was 30,000 units (Materials :20%; Conversion : 40%).Required :(a) Prepare the Packing Department production cost report for the month of Aug 2020using (round up to 2 decimal place) :(i) Weighted Average method(ii) FIFO methodNote : You may prepare the production cost report using WORD or EXCEL. (9 marks)

Name: 3/6QUESTION 3 (8 marks)Universe Ltd. manufactures the joint products,
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Description: 3/6QUESTION 3 (8 marks)Universe Ltd. manufactures the joint products, Victor and Wiser. Victor sells for$7.50 per unit, whereas Wiser sells for $16 per unit.The 2 products require further processing beyond the split-off point. The followinginformati

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Universe Ltd. manufactures the joint products, Victor and Wiser. Victor sells for $7.50 per unit, whereas Wiser sells for $16 per unit. The 2 products require further processing beyond the split-off point. The following information relates to the 2 products: Victor 300,000 $300,000 Wiser Production (units) Separable costs 250,000 $1.400,000 Total joint processing costs were $700,000. Required : (a) Determine the total cost per unit of each of the products using the physical method. (Show all workings. You may prepare your workings using WORD or EXCEL) (I mark) (b) Determine the total cost per unit of each of the products using the net realisable value method. (Show all workings. You may prepare your workings using WORD or EXXCEL) (3 marks) (c) Determine the total cost per unit of each of the products using the constant gross margin method. (Show all workings. You may prepare your workings using WORD or EXCEL) (2 marks) (d) "Wiser" could be further processed into "Xcellor" for an additional cost of $20.00 per unit. "Xcellor" would sell for $33.00 per unit. Should the company produce "Xcellor"? Show the necessary computation to justify your decision. (Show all workings. You may prepare your workings using WORD or EXCEL)

Universe Ltd. manufactures the joint products, Victor and Wiser. Victor sells for $7.50 per unit, whereas Wiser sells for $16 per unit. The 2 products require further processing beyond the split-off point. The following information relates to the 2 products: Victor 300,000 $300,000 Wiser Production (units) Separable costs 250,000 $1.400,000 Total joint processing costs were $700,000. Required : (a) Determine the total cost per unit of each of the products using the physical method. (Show all workings. You may prepare your workings using WORD or EXCEL) (I mark) (b) Determine the total cost per unit of each of the products using the net realisable value method. (Show all workings. You may prepare your workings using WORD or EXXCEL) (3 marks) (c) Determine the total cost per unit of each of the products using the constant gross margin method. (Show all workings. You may prepare your workings using WORD or EXCEL) (2 marks) (d) "Wiser" could be further processed into "Xcellor" for an additional cost of $20.00 per unit. "Xcellor" would sell for $33.00 per unit. Should the company produce "Xcellor"? Show the necessary computation to justify your decision. (Show all workings. You may prepare your workings using WORD or EXCEL)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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