In a manufacturing company 10,000 kl of “A” is processed to produce 6,000 kl of “B” and 4,000 kl of “C”. The joint cost before the separation point came to an amount of Rs. 24,000. From the following particulars, calculate the apportionment of joint cost and the profit of each product under (a) physical measurement (b) market value at separation point and (c) market value after further processing.
|
B Rs. |
C Rs. |
|
|
Unit selling price at separation point |
5 |
3–75 |
|
Unit selling price after further processing |
7 |
7–50 |
|
Further processing costs after separation |
5,000 |
7,500 |