1. Alpha limited is involve in the production of joint products X and Y as well as product Z as by-product. Joint cost for the period show Rs. 520,000. Joint cost are assigned to X and Y by the constant gross profit method which consider further processing cost in subsequent operations. To determine cost of Z, net income from Z is added to the income of main products. Additional data;

Products	Sales (units)	Further processing cost Rs.	Sales price per unit Rs.	Marketing and Administration cost Rs.
X	6,000	8,000	5	-
Y	12,000	10,000	15	-
Z	2,000	2,000	22	1.5 per unit

Required: Calculate the Joint cost allocated to X, Y and Z. (8)

When a by-product does not have any realizable value, then how can cost of by-product should be treated?