A factory is engaged in the production of a chemical, X, and in the course of...

 

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A factory is engaged in the production of a chemical, X, and in the course of its manufacture, a by-product Y is produced, which after a separate process, has a commercial value. For the month of January, the following are the summarized costing data: Joint expenses Separate expenses Y $ $ Materials 19,200 7,360 780 Labour 11,700 7,680 2,642 Oncost 3,450 1,500 544 The output for the month was 142 tonnes of X and 49 tonnes of Y and the selling price of Y averaged $280 per tonne. Assume that the profit on Y is estimated at 50% of the selling price. Prepare an account showing the cost of X per tonne. A factory is engaged in the production of a chemical, X, and in the course of its manufacture, a by-product Y is produced, which after a separate process, has a commercial value. For the month of January, the following are the summarized costing data: Joint expenses Separate expenses Y $ $ Materials 19,200 7,360 780 Labour 11,700 7,680 2,642 Oncost 3,450 1,500 544 The output for the month was 142 tonnes of X and 49 tonnes of Y and the selling price of Y averaged $280 per tonne. Assume that the profit on Y is estimated at 50% of the selling price. Prepare an account showing the cost of X per tonne.

Answer rating: 100% (QA)

Calculation of the Share of Y Joint Cost Sales val... View the full answer