Model: Joint Products
X Ltd produced four joint products A, B, C and D, all of which emerged from the processing of one raw-material. The following are the relevant data:
Production for the Period:
|
Joint Product |
No. of Units |
Selling Price Per Unit Rs. |
|
A |
500 |
16.00 |
|
C |
400 |
8.00 |
|
D |
200 |
22.00 |
While the company budgets for a profit of 10% of sales value, the other estimated costs are as follows:
|
Carriage inwards |
2,000 |
|
Direct wages |
6,000 |
|
Manufacturing Overheads |
4,000 |
Administration overhead is 10% of sales value. You are required to
- Calculate the maximum price that may be paid for the raw material
- Prepare a comprehensive cost statement for each of the products allocating the materials and other things based upon
- Number of units
- Sales value