Treatment of By-Product.

Q87. What is the treatment of By-Product?
Ans. Treatment of By-Product is:

  1. When they are off small value: It may be transferred to Costing profit and loss account or it may be credited to main product account.
  2.  When they are of considerable value: Treat it same as joint product and apportion the total cost into Joint and By-product as per any of the above method.

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