A factory produces an article A; this process yields B and C as by products. The costs are as follows:
|
Actual Joint costs |
Subsequent cost |
|||
|
A |
B |
C |
||
|
Material |
10,000 |
1,500 |
1,300 |
1,000 |
|
Labour |
1,600 |
200 |
150 |
100 |
|
Overhead |
8,000 |
800 |
550 |
400 |
|
19,600 |
2,500 |
2,000 |
1,500 |
|
|
Estimated sales |
30,000 |
24,000 |
20,000 |
|
|
Estimated profit |
30% |
25% |
20% |
Show how you would apportion the joint cost of manufacture.