X Ltd. manufactures product A which yields two by-products B and C. In a period the amount spent up to the point of separation was RO 20,600. Subsequent expenses were: A B Materials (in RO) 300 200 150 Direct Wages (in RO) 400 300 200 Overhead (in RO) 300 270 280 Gross sales value of product A, B and C was RO 15,000, RO 10,000 and RO 5,000 respectively. It was estimated that the net profit as a percentage of sales in B and C would be 25% and 20% respectively. Ascertain the profit earned on A. Product Sales Profit Estimated Post Separation Proportion of Cost Cost Joint Cost IC 田 Sales Of A Joint Cost of A Post Separation Cost Profit
X Ltd. manufactures product A which yields two by-products B and C. In a period the amount spent up to the point of separation was RO 20,600. Subsequent expenses were: A B Materials (in RO) 300 200 150 Direct Wages (in RO) 400 300 200 Overhead (in RO) 300 270 280 Gross sales value of product A, B and C was RO 15,000, RO 10,000 and RO 5,000 respectively. It was estimated that the net profit as a percentage of sales in B and C would be 25% and 20% respectively. Ascertain the profit earned on A. Product Sales Profit Estimated Post Separation Proportion of Cost Cost Joint Cost IC 田 Sales Of A Joint Cost of A Post Separation Cost Profit
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 12PB: Laramie Industries produces two joint products, H and C. Prior to the split-off point, the company...
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