Lilac Flour Mills Calculation of average unit product costs (on the basis of production quantities)

Month Joint costs allocated on the Production Product basis of in tons production quantities White Flour 540 999,000 Suji 90 166,500 Wholemeal flour 90 166,500 Bran 180 333,000 900 1,665,000 Joint cost per ton 1,850 1,850 1,850 1,850 Separable costs per ton 78 84 34 16 Total cost per ton 1,928 1,934 1,884 1,866

Lilac Flour Mills Calculation of average unit product costs (on the basis of sales value)

Product White flour Suji Wholemeal flour Bran

Production in tons 540 90 90 180 900

Sales price per ton 2,100 2,480 2,000 1,140

Sales Value 1,134,000 223,200 180,000 205,200 1,742,400

Joint costs allocated on the basis of sales value 1,083,626 213,285 172,004 196,085 1,665,000

Joint cost per ton 2,007 2,370 1,911 1,089

Lilac Flour Mills Calculation of average unit product cost (on the basis of net realizable value)

Product

Production in tons 540 90 90 180

Sales price per ton 2,100 2,480 2,000 1,140

Sales Value

Separable costs Separable per ton Costs 78 84 34 16 42,120 7,560 3,060 2,880

White flour Suji Wholemeal flour Bran

1,134,000 223,200 180,000 205,200

900

1,742,400

Lilac Flour Mills Calculation of average unit product costs (on the basis of 3 by-products)

Product White flour Suji Wholemeal flour Bran

Production in tons 540 90 90 180 900

Sales price per ton 2,100 2,480 2,000 1,140

Sales Value 1,134,000 223,200 180,000 205,200 1,742,400

Joint costs allocated on the Joint cost basis of 3 byper ton products 1,070,100 1,982 215,640 2,396 176,940 1,966 202,320 1,124 1,665,000

Lilac Flour Mills Calculation of average unit product costs (on the basis of bran as a by-product)

Product

Production in tons 540 90 90 180 900

Sales price per ton 2,100 2,480 2,000 1,140

Joint costs allocated on the Sales Value basis of bran as a by-product 1,134,000 223,200 180,000 205,200 1,742,400 1,079,026 212,380 171,274 202,320 1,665,000

Joint cost per ton 1,998 2,360 1,903 1,124

White Flour Suji Wholemeal flour Bran

uct costs antities) Also called Physical Measure method Monthly wheat input = 900 tons Sales price per ton 2,100 2,480 2,000 1,140 Profit for total output 92,880 49,140 10,440 (130,680) 21,780

Profit per ton

172 546 116 (726)

lls t product costs es value) Monthly wheat input = 900 tons Separable costs per ton 78 84 34 16 Total cost per ton 2,085 2,454 1,945 1,105 Profit for Profit per ton total output 15 26 55 35 8,254 2,355 4,936 6,235 21,780

Lilac Flour Mills on of average unit product costs basis of net realizable value) Monthly wheat input = 900 tons Net Joint costs Realizable allocated on the Value at basis of net splitoff realizable value point 1,091,880 1,077,781 215,640 212,856 176,940 174,655 202,320 199,708 Joint cost per ton 1,996 2,365 1,941 1,109 Separable Total cost Profit per costs per per ton ton ton 78 84 34 16 2,074 2,449 1,975 1,125 26 31 25 15 Profit for total output 14,099 2,784 2,285 2,612

1,686,780

1,665,000

21,780

lls t product costs products) Monthly wheat input = 900 tons Separable costs per ton 78 84 34 16 Total cost per ton 2,060 2,480 2,000 1,140 Working backwards Profit for Profit per ton total output 40 0 0 0 21,780 0 0 0 21,780

lls t product costs a by-product) Monthly wheat input = 900 tons Separable costs per ton 78 84 34 16 Total cost per ton 2,076 2,444 1,937 1,140 Profit for Profit per ton total output 24 36 63 0 12,854 3,260 5,666 0 21,780

EXHIBIT - I Lilac Flour Mills Flow Chart

Chaff Brushing

Roller Mills

First Break
Dust Removal Triuor Equipment Sieving Wheat Corn Washing

Second Break

Third Break

Fourth Break

Sieving Sieving Sieving

Plant Sifters

White

Suji

Wholemeal Flour

Bran

Cleaning

Milling

EXHIBIT - II Lilac Flour Mills Calculation of average unit product costs

Product Production in tonnes 2 540 90 90 180 900 Joint costs allocated Joint cost Seperable on basis of per ton Costs production quantities per ton 3 4=3/2 5 Rs. Rs. Rs. 999,000 1,850 78 166,500 1,850 84 166,500 1,850 34 333,000 1,850 1,665,000 Rs. 1,850 16 Total cost per ton 6=4+5 Rs. 1,928 1,934 1,884 1,866 Monthly Wheat input = 900 tons Sales Profit Profit (Loss) for Price (Loss) total output per ton per ton 7 8=7-6 9=8x2 Rs. Rs. Rs. 2,100 172 92,880 2,480 546 49,140 2,000 116 10,440 1,140 (726) Rs. (130,680) 21,780

1 White flour Suji Wholemeal flour Bran

EXHIBIT - III Lilac Flour Mills Calculation of average unit product costs
Product Production in tonnes 2 Rs. 540 90 90 180 900 Sales Net Value Sales per ton Value 3 4=2x3 Rs. Rs. 2,100 1,134,000 2,480 223,200 2,000 180,000 1,140 205,200 1,742,400 % of total sales value 5 65.08 12.81 10.33 11.78 100.00 Joint costs allocated on basis of relative sales value 6 1,083,626 213,285 172,004 196,085 1,665,000 Monthly Wheat input = 900 tons Allocated Seperable Total Profit Profis Costs Costs cost (Loss) for per ton per ton per ton per ton total output 7=6/2 8 9 = 7 + 8 10 = 3 - 9 11 = 10 x 2 Rs. Rs. Rs. Rs. Rs. 2,007 78 2,085 15 8,254 2,370 84 2,454 26 2,355 1,911 1,089 34 16 1,945 1,105 55 35 4,936 6,235 21,780

1 White flour Suji Wholemeal flour Bran