Q 2. Khaleel Compagny produces three products A, B and C. During the year the joint costs of processing the coffee were SAR270,000. Production and sales value information were as follows:
Sales Value
Product Units at Split-Off Separable Costs Selling Price
A 300,000 SAR9 per unit SAR5.00 per unit SAR32 per unit
B 200,000 SAR8 per unit SAR3.00 per unit SAR30 per unit
C 400,000 SAR7 per unit SAR2.00 per unit SAR20 per unit
Chose one method to allocate joint costs and allocate the joint costs.
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