Joint Product and By Product – Dani Ki Costing – CA IPCC Video Lectures


Joint Product and By Product – Dani Ki Costing – CA IPCC Video Lectures

Joint Product and By Product – Dani Ki Costing – CA IPCC Video Lectures | Joint Product and By Product – Dani Ki Costing – CA IPCC Video Lectures | Joint Product and By Product – Dani Ki Costing – CA IPCC Video Lectures | Joint Product and By Product – Dani Ki Costing – CA IPCC Video Lectures

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Dani Ki Costing
IPCC Video Lectures
Joint Product & By Product
Lecture 1
Lecture 2
Lecture 3


Lecture 4
Lecture 5

The End

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Costing of Joint Products and By Products

Many a time it happens that at the time of manufacturing two or more different products can be manufactured at a time. These products are considered as Joint Products. The example of same can be production of fuel oil, paraffin, etc from crude oil. While many a time a product is automatically manufactured along with the main product without any extra activity, such product is known as the By Product of the main product. Example of By Product is, glycerin is obtained while manufacturing soap. Costing of such Joint Products and By Products become complicated when the question comes for on what basis the cost should be apportioned.
For apportioning the cost between joint products different methods are used such as physical unit method, average unit cost method, survey method, contribution margin method and market value method. While different methods used in apportionment of joint cost of by products are market value or value on realization, standard cost in technical estimates, comparative price and re – use basis.

In costing of by product, the treatment of the same is based on the basis of its value. It means when the cost of by product are very small then total value of the same is to be considered, in case when the cost of by product is of considerable value also total value is considered and the difficulty arises when, further processing is required on by product. Value of by product at split off time is considered in case when the by product is to be further processed.


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