A company operates process in which yields a main product X and two by-products Y and Z. the actual joint cost for a period was Tk. 1,20,000, it was estimated that profit in the by products Y and Z as percentage of sales and total joint cost would be 35% and 10% respectively, subsequent costs were as follows:
Elements
X
Y
Z
Materials
Tk.15,000
Tk 1,500
Tk 500
Direct Wages
Tk.10,000
Tk5,000
Tk.1,000
Overhead
Tk 8,000
Tk 5,000
Tk.1,500
The sales of Y and Z were Tk. 60,000 and Tk.30,000 respectively.
You are required to:
a. Prepare a statement showing the apportionment of joint cost over the different products.
b. Calculate cost per ton of X, Y, and Z if production volume-100, 90, and 80 tons respectively.