manufacture is as follows:
|
Rs |
|
|
Materials |
5,000 |
|
Labour |
3,000 |
|
Overheads |
2,000 |
|
Total |
10,000 |
Subsequent costs are as follows:
|
P |
Q |
|
|
(Rs) |
(Rs) |
|
|
Material |
3,000 |
1,500 |
|
Labour |
1,400 |
1,000 |
|
Overheads |
600 |
500 |
|
5,000 |
3,000 |
Selling prices are as follows: P—Rs 16,000 and Q—Rs 8,000. Estimated profits on selling prices are 25% for P and 20% for Q. Assume that selling and distribution of expenses are in proportion to the sales price. Show how you would apportion joint cost of manufacture, and prepare a statement showing the cost of production of P and Q.