By-Product Sales Deducted from Total Cost:Under this method, the...

By-Product Sales Deducted from Total Cost:Under this method, the sales values of byproducts are deducted either from production cost or from the cost of sales. The stock in this case will be valued at total cost or cost of sales basis.there are a number of ways to account for by products. Reducing your costs is one way

RNU has chosen this method to apply the by products to reduce the cost. At end of day whether the by product sits in sales or costs it’s the net number which is the critical part hence I stick by my post net cost of production is US$1398.

either way provided EGR and Rnu numbers stack up we are both on a winner