alleryStart learning →Total production cost is Rs 5,00,000 and a by-product has NRV of Rs 20,000. Cost assigned to the main product?
ARs 5,20,000
BRs 4,60,000
CRs 5,00,000
DRs 4,80,000
Answer & Solution
Correct answer: D. Rs 4,80,000
The by-product's NRV is deducted from the total cost, so 5,00,000 - 20,000 = Rs 4,80,000.
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