st: 40000Toyochem Specialty Chemical Sdn Bhd purchases a compound that is then processed to yieldthree types of acids: Sulfuric acid, Acetic acid and Nitric acid. In January 2022, Toyochempurchased 10,000 gallons of the compound at a cost of RM280,000 and the company incurredjoint production cost of RM40,000. Sales and production information for the month of January2022 is as follows:Sulfuric acidAcetic acidNitric acidProductioningallons2,5003,5005,500Price atsplit offpointRM554030Furtherprocessing costper gallonsRM5FinalSales priceRequired:Compute and allocate the total joint cost to three products using:a) Physical unit method.b) Sales-value at split of point.c) Net realizable value method.RM60(Note: round up all decimal points to two decimal points where applicable)Sulfuric acid and Acetic acid are sold to other chemical companies at the split off point. Nitricacid can be sold at the split off point or processed further into ammonia nitic for the manufactureof fertilizer.

Joint cost is that cost which is incurred commonly by the Business Entity, to produce 2 or more…

Answered: Required: Compute and allocate the…

Required: Compute and allocate the total joint cost to three products using: a) Physical unit method. b) Sales-value at split of point. c) Net realizable value method.

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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