X Ltd is in the food processing industry. In one of its processes, three joint products are manufactured. Traditionally, the company apportions costs incurred upto the joint products’ pre-separation...

X Ltd is in the food processing industry. In one of its processes, three joint products are manufactured. Traditionally, the company apportions costs incurred upto the joint products’ pre-separation point on the basis of weight of output of the product.

You are required to prepare statements for the management to express:

(a) The profit or loss of each product as ascertained, using weight basis of apportioning pre-separation joint cost.

(b) The optimal contribution which could be obtained from the manufacture of these products. The following process data for December are given. Costs incurred upto separation point are `96,000.