(b) In the course of manufacture of the main product 'P' by products 'A' and 'B'...

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(b) In the course of manufacture of the main product 'P' by products 'A' and 'B' also emerge. The joint expenses of manufacture amount to 1,19,550. All the three products are processed further after separation and sold as per details given below: Sales Cost incurred after separation Profit as percentage on sales Main product P 90,000 6,000 25 By products A 60,000 5,000 20 B 40,000 4,000 15 Total fixed selling expenses are 10% of total cost of sales which are apportioned to the three products in the ratio of 20: 40:40. (i) Prepare a statement showing the apportionment of joint costs to the main product and the two by products. (ii) If the by-product A is not subjected to further processing and is sold the point of separation for which there is a market, at 58,500 without incurring any selling expenses. Would you advise its disposal at this stage. Show the workings. [6] (b) In the course of manufacture of the main product 'P' by products 'A' and 'B' also emerge. The joint expenses of manufacture amount to 1,19,550. All the three products are processed further after separation and sold as per details given below: Sales Cost incurred after separation Profit as percentage on sales Main product P 90,000 6,000 25 By products A 60,000 5,000 20 B 40,000 4,000 15 Total fixed selling expenses are 10% of total cost of sales which are apportioned to the three products in the ratio of 20: 40:40. (i) Prepare a statement showing the apportionment of joint costs to the main product and the two by products. (ii) If the by-product A is not subjected to further processing and is sold the point of separation for which there is a market, at 58,500 without incurring any selling expenses. Would you advise its disposal at this stage. Show the workings. [6]