Order this Paper
NOTE: Using Excel, answer the questions below. Use one tab per
question and also include any written response within Excel. Use the
appropriate formula in excel to answer these questions.
QUESTION 1:
Moo Dairy Limited is located in Tasmania and produces organic Milk,
Yoghurt and Ice-cream from its state of the art production facility.
The initial joint cost of production is $1,200,000 for the year. This cost
results in an output of 2,000,000 litres.
Details relating to the 3 joint products are given below:
Milk
Yoghurt
Ice-cream
Quantity at split-off
point
1,000,000
litres
400,000 litres
600,000 litres
Selling price at
split-off point
$ 1.00 per litre
$ 2.00 per litre
$ 3.00 per litre
Separable cost
$ 0.50 per litre
$ 1.25 per litre
$ 1.50 per litre
Sales price of
ultimate product
$ 5.50 per litre
$ 4.00 per litre
$ 9.00 per litre
REQUIRED:
Q 1. Allocate the joint cost between Milk, Yoghurt and Ice Cream using:
a) The Physical Units Method.
b) The Relative Sales Value Method. Round percentage to 2 decimal
places.
c) Net Realisable Value Method. Round percentage to 2 decimal places.
Q 2. Moo Dairy Limited has a request from a prospective customer to
further process all its Ice Cream production into Gourmet Ice Cream
which will then be bought by the customer for $12.00 per litre. This will
increase the separable costs of ice cream per litre to $2.60.
Would you advise the company to accept the offer? Why or why not?
QUESTION 2:
Limited edition dresses Pty Ltd incurred the following costs for job
number SH400, which consisted of 500 cocktail dresses for sale to a
fashion store.
Direct material:
1 December Requisition no. 520: 900 metres of Cotton @ 8.50 per metre
16 December Requisition no. 101: 600 metres of Nylon @ $4.40 per
metre
Direct labour:
16 December Timesheet no. 72: 500 hours@$24 per hour
Manufacturing overhead:
Applied on the basis of direct labour hours @$12 per hour
Additional information:
Job SH400 was completed on 16 December.
REQUIRED:
Prepare a job cost sheet including dates & requisition / timesheet
numbers and record the information given above and also a cost
summary for job SH400