Example: Feature Cost Percent and Co-Product and By-Product Costing

This list applies to the example of feature cost percent and co-product and by-product costing:

• Cumulative cost = cost of this operation + cost of previous operation − cost of the co-product or by-product produced in the previous operation.

• The total of all percentages at an operation cannot exceed 100 percent.

• The total of all percentages at the last operation must equal 100 percent.

  This table shows an example of feature cost percent and co-product and by-product costing:

  Operation	Co-/By- Product	Feature Cost Percent	Cost This Operation	Cumulative Cost	Co-/By-Product Cost
  10	By 1	10	100.00	100.00	10.00
  20	Co 1	30	100.00	100.00 + (100.00 − 10.00) = 190.00	57.00
  20	Co 2	20	NA	NA	38.00
  30	NA	NA	100.00	100.00 + (190.00 − 95.00) = 195.00	NA
  40	Co 3	60	100.00	100.00 + 195.00 = 295.00	177.00
  40	Co 4	30	NA	NA	88.50
  40	Co 5	10	NA	NA	29.50

This list identifies calculations for feature cost percent and co-product and by-product costing:

• Co-product or by-product cost at an operation = cumulative cost at an operation × the feature cost percent.

• Cumulative cost = cost this operation + cost of previous operation − cost of the co-product or by-product produced in the previous operation.

• The total of all percentages at an operation cannot exceed 100 percent.

• The total of all percentages at the last operation must equal 100 percent.