Where they require further processing

In this case, the net realisable value of the
by-product at the split-off point may be arrived at by subtracting the further processing
cost from the realisable value of by-products.
If total sales value of by-products at split-off point is small, it may be treated as per the
provisions discussed above under (i).
In the contrary case, the amount realised from the sale of by-products will be considerable and
thus it may be treated as discussed under (ii).
(Students must solve a large number of questions from process costing so as to acquire the
required proficiency in the area).