Problem 6

A company operates process I which yields a main product A and two by-products B and C. the actual joint cost for a period was Tk. 16000. it was estimated that profit in the by products B and C as percentage of sales would be 35% and 25% respectively, subsequent costs were as follows:

ElementsABC Tk.Tk.Tk.Materials20015050Direct wages400500100Overheads300500150 9001150300

The output for the period were 200 tons of A. 130 tons of B and 120 tons of C. the sales of B and C were Tk. 8000 and 3000 respectively.

You are required to:

1. Prepare a statement showing the apportionment of joint cost over the different products
2. Prepare accounts showing the cost of A, B and C per ton.