Allocation of Specific Costs

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.... * 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 one product being produced sim....

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....quired 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 agricultural produce harvested from biological as....