1. A firm manufactures three joint products, A, B, C and a by-product X by processing a common stock of material, which cost Rs.8 per kg. The details of output, market price and the initial processing cost for an input of 10,000 kg of raw material are as follows: Product Output Initial Processing Cart A 9000 2500 1500 500 Current Market Price/ 18 20 24 Derect bor 1000 hours: 20 Variable OverN of Direct labor Fred over 1000 The company apportions common cost among joint products on physical units' basis. All the by-products can be further processed further and sold at a higher market price, with some sales promotion efforts. The estimated processing cost, marketing cost and the final selling price are given below: Product Further Processing further Marketing Cost Final Price per kg-Ra Cost perl-Ra perka 25 25 B C K 5 6 2 2 2 2500 1500 20 24 Variable Overhead BON Duct labor and overheads: 27.000 The company apportions common cost among joint products on physical units' basis. All the by-products can be further processed further and sold at a higher market price, with some sales promotion efforts. The estimated processing cost, marketing cost and the final selling price are given below: Product Further Processing Purther Marketing Cost Final Price per ke-Ra Cost per la per kg. A . . 5 . 20 25 2 2 2 1 E Required: [a] Cost of joint products at the point of separation after initial processing. Comment on the method of apportioning joint costs. [b] Profit or loss if the products are sold without further processing. [c] Which of the products have to be processed further for maximizing profits? Show working. 1. A firm manufactures three joint products, A, B, C and a by-product X by processing a common stock of material, which cost Rs.8 per kg. The details of output, market price and the initial processing cost for an input of 10,000 kg of raw material are as follows: Product Output Initial Processing Cart A 9000 2500 1500 500 Current Market Price/ 18 20 24 Derect bor 1000 hours: 20 Variable OverN of Direct labor Fred over 1000 The company apportions common cost among joint products on physical units' basis. All the by-products can be further processed further and sold at a higher market price, with some sales promotion efforts. The estimated processing cost, marketing cost and the final selling price are given below: Product Further Processing further Marketing Cost Final Price per kg-Ra Cost perl-Ra perka 25 25 B C K 5 6 2 2 2 2500 1500 20 24 Variable Overhead BON Duct labor and overheads: 27.000 The company apportions common cost among joint products on physical units' basis. All the by-products can be further processed further and sold at a higher market price, with some sales promotion efforts. The estimated processing cost, marketing cost and the final selling price are given below: Product Further Processing Purther Marketing Cost Final Price per ke-Ra Cost per la per kg. A . . 5 . 20 25 2 2 2 1 E Required: [a] Cost of joint products at the point of separation after initial processing. Comment on the method of apportioning joint costs. [b] Profit or loss if the products are sold without further processing. [c] Which of the products have to be processed further for maximizing profits? Show working
