- Question Klover Pylad Is The Parent Company Of Two Stochery Companies Pesture Pty Lid And Flevoured Mk Pl The Company 1 (41.3 KiB) Viewed 85 times
Allocate the joint costs to the products based on the sales
value at split-off point method and name 2 other methods that can
be used to allocate joint costs.
part b
- Calculate the normal average cost to produce one unit of
milkshake during April 2021.
- Prepare the quantity statement assuming the company now makes use
of the weighted average method of inventory valuation and the loss
occurs at 10% completion.
Question Klover Pylad is the parent company of two stochery companies Pesture (Pty) Lid and Flevoured MK (PL The company operates in the day industry and heatew on business. Each of these companies wiferent casting systems indicated in the respective parts below PARTA Pestre Pyi Led consists of multiple deity for and the nature of the business is to produce products from and process using tomik The joint process produces butler, cheese and cream The company as a joint and by gradus costing system During the process, approximately 20% of the milik is discarded in the form of whey, dairy suage and wastewater To prevent water pollution, the diary sludge and wastewater must be disposed of is estimated that wil.co the company R 200 000 in the 2021 financial your te safely dispose of this. The Whey has an extremely high nuslent value and can be set for R20 per kilograma pressing the Due to badalonte nature further promising cos of the why amount to R5 per kilogram The following is an estimate of the cost to be incurred for the 2021 fratell year regarding the production of these products Direct material R100 000 Direct labour R 340 000 Transportation of milk R370 000 Maruthaturing natats R60 000 At the spot point one tonne of milik petaries 250g of butter, 150kg of cheese, 100kg of cream and sook of Wrey. At this point butter said to R120 per kilogram cheese is sold for RBO par kilogram and creamy sold for R50 per kilogram Na Sunter processing done on the joint products. Asume that the company had no pening or closing vettory, Manager Accounting and Finance PARTE Flavoured MIPY Ld manafecture long life mistakes which are sold in 500 ml bottes The companyies e process conting system The following notion was provided for the month anded 20 Apr 2021 1) The company had 30 000 of milk in opening work in progress (WP) on 1 Apr 2021. Opening WP wes 30% complete wth a resulting cost of 255 000 for material and R 162 000 for conversion 2) 120 000 wes of milk were put into production during the month of Apel 2021 3) Litrea completed and transferred to finished goods during the month were 120.000 4) For the month of April 2021. material and conversion costs of 1020 000 ans R 750 000 respectively were incurred 5) Evaporation occurs when the proces i 70% comple, resulting in an estimated on of 5% of the mode e) Cling WP of 20000 hores were 80% complet 7) The company was the First-i-frau (FIFO mediod of inventory valuation Materials added in the beginning of the process and conversion takes places every roughout the proos