In a manufacturing concern, a certain product A yields by products B and C. The joint expenses of manufacture are as follows:
|
Rs |
|
|
Materials |
12,500 |
|
Labour |
10,000 |
|
Overheads |
17,500 |
The subsequent expenses are as follows:
|
A (Rs) |
B (Rs) |
|
|
Materials |
600 |
700 |
|
Labour |
1,300 |
900 |
|
Overhead |
100 |
800 |
|
2,000 |
2,400 |
Selling prices are A—Rs 40,000 and B—Rs 32,000. Estimated profits on selling price are A—30% and B—30%. Show how you would apportion the joint costs of manufacture and prepare the products accounts.