You were recently appointed as the management accountant of PaintMe (Pty) Ltd(PaintMe). The entity operates...
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You were recently appointed as the management accountant of PaintMe Pty LtdPaintMe The entity operates a joint process to manufacture specialised paintsnamely Mellow and Sleazy, using only one type of raw material.In January material usage amounted to kg at a total cost of RConversion costs Joint cost amounted to R and the output was as follows: Mellow kgs and Sleazy kgs The output of Sleazy is sold at R per kg without further processing, but the outputof Mellow was processed further at a conversion cost of R per kg The Mellowproduct is sold for R per kgPaintMe presently apportions joint costs to the products according to the weight ofoutput at the splitoff point.The managing director has suggested that, in order to save costs, it may be advisableto discontinue all sales of Mellow.Additional informationAssume that a unit of paint produced equals kg Calculate the profit or loss per kg of the products Mellow and Sleazyrespectively, according to the existing joint cost allocation basis. Calculate the profit or loss per kg of the products Mellow and Sleazy respectively, according to the market value at splitoff point
You were recently appointed as the management accountant of PaintMe Pty LtdPaintMe The entity operates a joint process to manufacture specialised paintsnamely Mellow and Sleazy, using only one type of raw material.In January material usage amounted to kg at a total cost of RConversion costs Joint cost amounted to R and the output was as follows: Mellow kgs and Sleazy kgs The output of Sleazy is sold at R per kg without further processing, but the outputof Mellow was processed further at a conversion cost of R per kg The Mellowproduct is sold for R per kgPaintMe presently apportions joint costs to the products according to the weight ofoutput at the splitoff point.The managing director has suggested that, in order to save costs, it may be advisableto discontinue all sales of Mellow.Additional informationAssume that a unit of paint produced equals kg Calculate the profit or loss per kg of the products Mellow and Sleazyrespectively, according to the existing joint cost allocation basis. Calculate the profit or loss per kg of the products Mellow and Sleazy respectively, according to the market value at splitoff point
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