(a)Describe the FOUR (4) methods of allocating joint costs to products. (12 marks) (b)Weng Tai company simultaneously produces three products (X, Y and Z) from a single process. X and Y are processed further before they can be sold; Z is a by-product that is sold at split off point for RM2 per unit without incurring any further process costs. Joint costs are apportioned using the final sales value method. The sales prices of X and Y after further processing are RM40 per unit and RM35 per unit respectively. Data for April are as follows:

Joint production costs that produced 5,000 units of X, 5,500 units of Y and 3,500 units of Z150,000
Further processing costs for 5,000 units of X30,000
Further processing costs for 5,500 units of Y40,000

Required:
Calculate the total costs and profit for the production of X and Y. (14 marks)

(c)Discuss THREE (3) arguments in support of variable costing and absorption costing. (12 marks)

(d)Zency Sdn Bhd produces pens. Data concerning the company’s operations last year appear as follows:
Units in beginning inventory5,000
Units produced50,000
Units sold46,000

Selling price per unitRM2.50

Variable costs per unit:
Direct materialsRM0.80
Direct laborRM0.50
Variable manufacturing overheadRM0.10
Variable selling and administrative overheadRM0.05
Fixed costs in total:
Fixed manufacturing overheadRM20,000
Fixed selling and administrative overheadRM10,000

Required:
Prepare an income statement for the year using absorption costing. (12 marks)