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RD Chemical Ltd. produces three products A, B, and C. Following are the data available for these three products produced by RD Chemical Ltd.
Product A 3,000 kgs sold at Rs. 250 per kg.
Product B 8,000 kgs sold at Rs. 150 per kg.
Product C 1,500 kgs sold at Rs. 300 per kg.
Total joint cost of producing the above products was Rs. 1,500,000 \
Required:
Question a) Apportion the joint costs and calculate profit for each product by using Physical Unit Method
Question b) What is the variance between Physical Unit Method and Sales Value Method
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