In a concern engaged in process industry, four products emerge from a particular process of operation. The total cost of input for the period ended 30th September 2002 is Rs.2, 53, 500. The details of output, additional cost after ‘split off point’ and sales value of the products are appended below.
|
Product |
Output – kg |
Additional processing |
Sales value |
|
A |
8, 000 |
60, 000 |
1,68,000 |
|
B |
5, 000 |
10, 000 |
1,10,000 |
|
C |
3, 000 |
— |
60,000 |
|
D |
4, 000 |
20, 000 |
90,000 |
If the products are sold at ‘split off point’ without further processing, the sales value would have been,
A: Rs.1, 15, 000
B: Rs.90, 000
C: Rs.55, 000
D: Rs.80, 000
You are required to prepare a statement of profitability based on the products being sold:
I] After further processing, and
II] At the split off point.