Question

1. While manufacturing the main product X, a company processes two By-
Products A and B. Using the method of working back from sales value to an
estimated cost, you are required to find out the Net Profit of X.A and B. Total
Cost up to separation Rs 2,72,000. Sales (All Production) X-Rs 6,56,000.A-Rs
64,000,B-Rs 96,000. Cost after separation A-Rs 19,200,B-Rs 28.800. Estimated
profits percentages to sales values A-20%. B-30%. Estimated selling expenses(as
a percentages of sales values) X-20%, A-20% B-20% *
O ,
X-2,98,200, A-18,800,B-28,200
X-2,93,800, A-18,100,B-28,100
O --
X-2,91,200, A-12,800,B-28,800
X-2,95,800, A-18,300,B-28,800​

Answer 1

Answer:

The company values work-in-process at factory cost for both Financial and Cost ... Production cost of goods sold (14,500 units) ... Selling & distribution overheads (14,500 units x Rs. 4).Of this total cost entering production,`48, 20,000 was transferred to finished goods (the other `1,80,000 remained in work in process (` 8 ...

2