Calculate the estimated cost of production of byproducts X and Y at the point of separation from the main product.

By-Products

X

Y

Selling price per unit

Rs. 12

Rs. 24

Cost per unit after separation from the main product

Rs. 3

Rs. 5

Units produced

500

200

Selling expenses amount to 25% of total works cost, that is, including both pre-separation and post-separation works cost. Selling prices are arrived at by adding 20% of the total cost, that is, the sum of works cost and selling expenses.