Joint products and by products

In video 2 illustration 1, they have said that the company produces 5000tons and in ICAI material they have taken the balance 200 as wastage and apportioned the cost, but in the video sir has taken total as 4800 and have proceeded it. Since they have mentioned 5000tons have been used how can we take the total as 4800.



Sri Varshini

Sri Varshini

CA Inter


25-Aug-20 17:54


Answers (2)

It is understandable clearly that the difference between the input and the output is wastage. Even in the material it is just shown that 200 tons is wastage and 4,800 tons is taken as base. There is no further process given for the wastage. It will be sold as scrap.

Madhuri Veluri

Madhuri Veluri


25-Aug-20 23:57