Question

QUESTION 2                                        &nbsp

QUESTION 2                                                                                                            

Cola company produces four soda products namely Cola, Lemonade, Mint, and Strawberry. During the month of June 2019, the joint processing cost was AED 600,000.  

The following information is available:

Product

Units produced

Additional processing cost in AED

Selling price at end of process AED

Cola Water

40 000

50,000

350,000

Lemonade Water

50 000

40,000

230,000

Mint Water

60 000

20,000

300,000

Strawberry Water

50 000

0

280,000

Required:  
Compute the cost per unit for Cola, Lemonade, Mint and Strawberry.

(Round to two decimal points if needed):

  1. Assuming the physical quantity method is used.
  2. Assuming the estimated Net Realizable Value Method is used.
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