Question:
X Ltd. manufactures Product A, which yields two by-products B and C. The actual joint expenses of manufacture for a period were Rs.8, 000. It was estimated that the profits on each product as a percentage of sales would be 30%, 25% and 15% respectively. Subsequent expenses were as follows:
|
Particulars
|
Product A
|
Product B
|
Product C
|
|
Materials
|
Rs.100
|
Rs.75
|
Rs.25
|
|
Direct wages
|
200
|
125
|
50
|
|
Overheads
|
150
|
125
|
75
|
|
Total
|
450
|
325
|
150
|
|
Sales
|
Rs. 6,000
|
Rs. 4,000
|
Rs. 2,500
|
Prepare a statement showing the apportionment of the joint expenses of manufacture over the different products. Also presume that selling expenses are apportioned over the products as a percentage to sales.