Allocation of Specific Costs

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..... cream from milk Fuel oil, Gasoline, and Kerosene from Crude Oil. By Product A secondary or incidental product, as in a process of manufacture. By-products generally have insignificant value. Example In the manufacture of Sugar Sugar is the main product and molasses is by-product. Allocation of cost in case of Joint Products A production process may result in more than .....

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..... ind out the cost of by-product. It is required to find out the cost of main product only. The following points help us to find out the cost of Main product: Find out the joint costs of main product by-products Compute Net realisable value of by product at the time of separation. Cost of main product = Joint cost of main product by-product Less NRV of by product. Cost of ag .....

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