RN Ltd. manufactures two primary products, P¹ and P2, through a joint process and a by-product, R12, is produced spontaneously. The relationship…

RN Ltd. manufactures two primary products, P¹ and P2, through a joint process and a by-product, R12, is produced spontaneously. The relationship between output quantities to the direct material input stays stable. To allocate joint production costs to the primary products, the company utilizes the physical volume method. During the month of March, company incurred joint production costs of 1,30,00,000. As the primary products are not freely marketable at the split-off point, they are processed further. The net realizable value of the by-product is treated as deductions from the joint production costs before the joint costs are allocated to the primary products. The information regarding company's production and its cost during the month of March is provided below: Particulars P1 P2 R12 Output (kg.) 1,95,000 3,90,000 81,250 Selling price per kg. 200 120 40 Further processing costs 26,00,000 39,00,000 - FIND OUT the amount of joint product cost to be allocated to P2 by using the physical volume method.