A company produces two joint products X and Y, using the same type of material. The cost data to produce 200 units of product X and 400 units of…
CA Intermediate · Cost and Management Accounting · PYQS · September 2025
A company produces two joint products X and Y, using the same type of material. The cost data to produce 200 units of product X and 400 units of product Y are as under: Material 80,000 Labour 40,000 Fixed overheads 20,000 Sales of product X was 200 units @350 per unit and product Y was 400 units @250 per unit. Using the Contribution margin method, in what ratio fixed overheads will be apportioned between Product X and Product Y?
Suggested Answer and Working Notes:
Correct Answer: Option (B)
3:2
Topics: Overheads - Absorption Costing Method, Process & Operation Costing
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