In the course of manufacture of the main product ‘P’, A and B also emerge. The joint expenses of manufacture amount to Rs.1, 19, 550. All the products are processed further after separation and sold as per details given below.
|
Particulars |
Main Product P |
By Product A |
By – Product B |
|
|
Rs. |
Rs. |
Rs. |
|
Sales |
90,000 |
60,000 |
40,000 |
|
Cost beyond split off point |
6,000 |
5,000 |
4,000 |
|
Profit as percentage of sales |
25% |
20% |
15% |
Selling and administration overheads are absorbed as a percentage of cost of sales. Prepare a statement showing the apportionment of joint cost to the main product and by products. Also prepare main product ‘P’ account.