Question
Questions Numbers 6# Work out the estimated pre-separation cost per tonne of by-products Y and Z, from the following data: Costs of manufacture before separation:
Questions Numbers 6#
Work out the estimated pre-separation cost per
tonne of by-products Y and Z, from the following data:
Costs of manufacture before separation:
$28,00,000.
Main product is X. There are two by-products Y
and Z whose normal selling prices are as under:
Sales price of Y: $500 per tonne; Sales price of Z:
$800 per tonne
Selling and distribution expenses have been
estimated to be 25% of selling price and the net
profit is expected to be 10% of selling price. Costs
to manufacture each tonne after separation from
the main products are:
$95 for by-product Y; $ 145 for by-product Z.
Assume equal weight for Y and Z.
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