AB Co. Ltd manufactures product A, which yields two by-products B and C. The actual joint expenses… 1 answer below »

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AB Co. Ltd manufactures product A, which yields two by-products B and C. The actual joint expenses of manufacturing for a period were Rs 8,200. The profits on each product as a percentage of sales are 33?%, 25% and 15%, respectively. Subsequent expenses are as follows:

Products

A

B

C

(Rs)

(Rs)

(Rs)

Materials

100

75

25

Direct wages

200

125

50

Overheads

150

125

75

450

325

150

Sales

6,000

4,000

2,500

Show how you would apportion the joint expenses of manufacture.

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