QUESTION- JP Itd produces three joint products- A, B and C-which are then further processed. It is normal practice for the company to apportion all pre-separation costs on the basis of weight of...

Extracted text: QUESTION- JP Itd produces three joint products- A, B and C-which are then further processed. It is normal practice for the company to apportion all pre-separation costs on the basis of weight of output of each Joint product. Data for the last period is as follows: Costs incurred up to separation point £9,600 Product B Product A Product C Output (kg) 100 60 80 Costs incurred after separation 2,000 1,200 800 Point selling price per kg After further processing 50 80 60 At pre-separation point (estimate) 25 70 45 Requirements Prepare a statement showing the profit or loss mad by each product using the present method of apportioning pre- separation costs. Advise the management of P Itd whether or not, on purely financial grounds, it should further process any of the three products.