Reference no: EM132517324

Cranbrook Chemical Ltd. manufactures two industrial compounds. In the month of May, 15,000 litres of direct material were processed at a joint cost of $400,000. The joint process yielded 16,000 containers of a compound known as Jarlon and 4,000 containers of a compound known as Kharton. The respective selling prices of Jarlon and Kharton are $38 and $58. Both products may be processed further. Jarlon may be processed at an incremental cost of $8 per container into 12,000 jars of Jaxton. Kharton may be processed at an additional cost of $32 per container into 3,000 jars of Kharton. The selling price of Jaxton is $48 per jar. The selling price of Kharton is $102 per jar.

Question 1: Calculate the total cost of the compounds Jarlon and Kharton, assuming joint costs are allocated on the basis of physical measure

Question 2: Calculate the total cost of the compounds Jaxton and Kharton, assuming joint costs are allocated on the basis of net realizable value