A Company operates a process which produces three joint products- K, P and Z. The costs of operating this process during September amounted to £117 000. During the month the output of the three products was:
|
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|
2000 litres |
|
P |
4500 litres |
|
Z |
3250 litres |
P is further processed at a cost of £9.00 per litre. The actual loss of the second process was 10% of the input which was normal. Products K and Z are sold without further processing.
The final selling prices of each of the products are:
|
K |
£20.00 per litre |
|
P |
£25.00 per litre |
|
Z |
£18.00 per litre |
Joint costs are attributed to products on the basis of output volume.
The profit attributed to product P was:
A £6750
B £12 150
C £13 500
D £16 200
E £18 000
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