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.