Product Y yields two by-products A and B. The joint cost of manufacture is 2,00,000. Sales of A and B are - 80,000 and - 50,000 respectively.…
CA Intermediate · Cost and Management Accounting · MTP · May 2025
Product Y yields two by-products A and B. The joint cost of manufacture is 2,00,000. Sales of A and B are - 80,000 and - 50,000 respectively. Manufacturing expenses after separation of A and B are - 10,000 and - 8,000 respectively while their respective estimated selling expenses on sales is 20% for both products. The estimated profit on sales of A and B is 25% and 30% respectively. What is the cost of product Y after adjusting joint cost apportioned to by-products A and B?
Suggested Answer and Working Notes:
Correct Answer: Option (B)
₹ 1,49,000
Topics: Process & Operation Costing
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