PUMA PERFUME COMPANY

Puma Perfume Co. processes Puma into four joint products A, B, C, and D. As
product D does not have any sale value, the company mixes products C & D in equal
proportion to produce product E. The total joint costs of the company for
December 2019 is budgeted to be Rs. 1,00,000. The company follows Net
Realizable Value (NRV) Method for allocation of joint costs. There is no opening and
closing stock of unprocessed A, B, C and D. There is no processing loss of any kind at
any stage. Following is the budget of the company for the month of December 2019.

Fill in all the blank spaces with suitable answers.

Budget for December, 2019

Particulars Unit A B C D Total

Output at Split Ltrs./ 300 100 300 300 1,000
Off Month
Sale price after Rs. / Ltr. 150 0 Output E
processing 380
Joint Variable Rs./ 16,000 0 64,000 80,000
Cost Month
Joint Fixed Cost Rs./ 4,000 0 16,000 20,000
Month
Unique Rs./ Ltr. 30 10 80
Variable Cost
Unique Total Rs./ 6,000 10,000 60,000 76,000
Fixed Cost Month
Unique Total Rs./ Ltr. 50 110 180
Cost
Unique Rs./ Ltr. 120 -10 300
Contribution
Unique BEP by Ltrs./ 50 Not 200
product Month achievable
Minimum Puma required to 166.67 Not 333.33
achieve Unique BEP Applicabl
Volume (Ltrs./ Month) e