Aroma Park Ltd. Produces two perfumes named Floral, Oriental, and one Cologne, all created through a joint production process. Below are the data…

(i) Statement showing profit/loss by each product after further processing products Floral (in ₹) Oriental (in ₹) Cologne (in ₹) Total (in ₹) Sales price after further processing 80 200 300 Less: Cost after split off 40 80 100 Less: Joint Cost (already apportioned) 60 60 60 Profit/(loss) per unit (20) 60 140 Quantity (in units) 5,000 3,000 2,000 Profit/(loss) (1,00,000) 1,80,000 2,80,000 3,60,000 (ii) Apportionment of joint costs on the basis of Net Realisable Value method Floral (in ₹) Oriental (in ₹) Cologne (in ₹) Total (in ₹) Sales price 80 200 300 Less: Post split-off cost (Further processing cost) 40 80 100 Net Realisable Value per unit 40 120 200 Net Realisable Value 2,00,000 (₹ 40 × 5,000) 3,60,000 (₹ 120 × 3,000) 4,00,000 (₹ 200 × 2,000) Apportionment of Joint Cost of 6,00,000* in ratio of 5:9:10 1,25,000 2,25,000 2,50,000 Total Profit 75,000 1,35,000 1,50,000 3,60,000 *Total Joint Cost = 60 x 5,000 + 60 x 3,000 + 60 x 2,000 = 6,00,000 Note: Profitability statement prepared after distributing joint cost based on NRV clearly shows that they are not selling its largest volume product, i.e floral at a loss. Actually, it yields a profit of 75,000.