Calculate the estimated cost of production of byproducts X and Y at the point of separation from the main product.
|
By-Products |
||
|
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 cost. Selling prices are arrived at by adding 20% of the total cost, that is, the sum of works cost and selling expenses.