The XYZ Chemical Company Ltd produces chemicals X and Y from material Z. 10 litres of raw material Z yield 8 litres of X and 2 litres of Y as a result of processing it in department I. Product X...

The XYZ Chemical Company Ltd produces chemicals X and Y from material Z. 10 litres of raw material Z yield 8 litres of X and 2 litres of Y as a result of processing it in department I. Product X requires furhter processing in department II and then is sold at `150 per litre. Product Y is sold at the split-off point for `112.50 per litre. The following additional data are available for the current period.

Prepare a statement apportioning the joint costs of Department I between Products X and Y using the net realisable value less normal profit method.