XYZ Chemicals Manufacturing Company Ltd buys a particular raw material at `4 per litre. At the end of the processing in department 1, this raw material splits-off into products, X, Y and Z. Product X...

XYZ Chemicals Manufacturing Company Ltd buys a particular raw material at `4 per litre. At the end of the processing in department 1, this raw material splits-off into products, X, Y and Z. Product X is sold at the split-off point, with no further processing. Products Y and Z require further processing before they can be sold. Product Y is processed in department 2, and product Z is processed in department 3. Following is a summary of costs and other related data for the end of the current year.

There were no opening and closing inventories of basic raw materials at the beginning as well as at the end of the year. All finished goods inventory of litres was complete as to processing. The company uses the relative sales value method of allocating joint costs.

You are required to prepare: (i) Schedule showing the allocation of joint cost; (ii) Cost of sales of each product, the cost of each ending inventory; and (iii) A comparative statement of profit.