, PLEASE USE THIS DOCUMENT AS A GUIDE ONLY
Part A
A) Prepare PD’s actual statement of profit or loss and other comprehensive income (income
statement) for the month ended December 2025.
1. Production Yields & Revenue Calculations
Total Coconuts Processed: 220,000
VCO Yield: 220,000 x 0.35 = 77,000 Litres
FCWater Yield: 220,000 x 0.45 = 99,000 Litres
Husk Yield: 220,000 x 0.5kg = 110,000 kg
Revenue:
VCO (at split-off): 77,000L×R120 = R9,240,000
FCWater (after processing): 99,000L×R70=R6,930,000
By-Product (Husk) Net Income: (110,000kg×R5.00)−(110,000kg×R1.20)=R418,000
2. Manufacturing Cost Calculations (Joint Costs)
Raw Materials: 220,000×R18=R3,960,000
Variable Overheads (VMO): (220,000/500 batches)×R440=R193,600
Direct Labour:
Time per coconut: 12 mins / 0.90 (to account for 10% idle time) = 13.333 mins.
Total hours: (220,000×13.333)/60=48,888.89 hours.
Cost: 48,888.89×R90=R4,400,000
Fixed Overheads (FMO): R150,000 (Actual)
Total Gross Joint Costs: R8,703,600
Less: Husk NRV: (R418,000)
Net Joint Costs to Allocate: R8,285,600
3. Cost Allocation (Physical Measure Method)
The total volume of joint products is 77,000L (VCO)+99,000L (FCWater)=176,000L.
VCO Allocation: (77,000/176,000)×R8,285,600=R3,624,950
FCWater Allocation: (99,000/176,000)×R8,285,600=R4,660,650
Part A
A) Prepare PD’s actual statement of profit or loss and other comprehensive income (income
statement) for the month ended December 2025.
1. Production Yields & Revenue Calculations
Total Coconuts Processed: 220,000
VCO Yield: 220,000 x 0.35 = 77,000 Litres
FCWater Yield: 220,000 x 0.45 = 99,000 Litres
Husk Yield: 220,000 x 0.5kg = 110,000 kg
Revenue:
VCO (at split-off): 77,000L×R120 = R9,240,000
FCWater (after processing): 99,000L×R70=R6,930,000
By-Product (Husk) Net Income: (110,000kg×R5.00)−(110,000kg×R1.20)=R418,000
2. Manufacturing Cost Calculations (Joint Costs)
Raw Materials: 220,000×R18=R3,960,000
Variable Overheads (VMO): (220,000/500 batches)×R440=R193,600
Direct Labour:
Time per coconut: 12 mins / 0.90 (to account for 10% idle time) = 13.333 mins.
Total hours: (220,000×13.333)/60=48,888.89 hours.
Cost: 48,888.89×R90=R4,400,000
Fixed Overheads (FMO): R150,000 (Actual)
Total Gross Joint Costs: R8,703,600
Less: Husk NRV: (R418,000)
Net Joint Costs to Allocate: R8,285,600
3. Cost Allocation (Physical Measure Method)
The total volume of joint products is 77,000L (VCO)+99,000L (FCWater)=176,000L.
VCO Allocation: (77,000/176,000)×R8,285,600=R3,624,950
FCWater Allocation: (99,000/176,000)×R8,285,600=R4,660,650
