In manufacturing the main product A, a company processes the resulting waste material into two by-products, M1 and M2 . Using the method of working backwards from the sales value to an estimated cost,...

In manufacturing the main product A, a company processes the resulting waste material into two by-products, M1 and M2 . Using the method of working backwards from the sales value to an estimated cost, prepare a comparative profit and loss statement of the three products from the following data:

(i) Total costs upto separation point was `1,36,000.