Calculate the estimated costs of production of by products X and Y at the point of separation from the main product.
|
By product |
By product |
|
|
X |
Y |
|
|
Selling price per unit |
Rs 12 |
Rs 24 |
|
Cost per unit after separation from the main product |
Rs 3 |
Rs 5 |
|
Units produced |
500 |
200 |
Selling expenses amount to 25% of total works cost, that is, including both pre separation and post separation works costs. Selling prices are arrived at by adding 20% of total cost, that is, the sum of works cost and selling expenses.