Find the above attached question and give the answer properly. 1. In a factory...
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Accounting
Find the above attached question and give the answer properly.
1. In a factory producing joint products of two varieties, the following data are extracted from the books: TOTAL (5) Sales of products X and Y 7,50,000 Direct Material 2,25,000 Direct Labour 1,10,000 Variable Overhead (150% on Labour) 1,65,000 Fixed Overhead 2,00,000 The analysis of sales reveals that the percentage of sale of product X is 662%. Management contemplates to process further joint products so that they could be sold at higher rates. Facilities for this are available. The additional expenditure for the further process and total sales anticipated at higher selling prices are given below. Make recommendations presenting the effect of the proposal. PRODUCT X PRODUCT Y TOTAL 6,00,000 3,00,000 9,00,000 Sales after further processing Additional material Additional direct labour 50,000 20,000 70,000 20,000 8,000 28,000
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