Reference no: EM132517199

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 A) Calculate the total cost of the compounds Jarlon and Kharton, assuming joint costs are allocated on the basis of physical measure

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