Ibadan Breweries Plc uses process costing with a by-product. Process output consists of 90% main product and 10% by-product. Total process costs are ₦4,500,000. The by-product has a net realisable value (NRV) of ₦180,000, which is credited against process costs under the NRV method. What is the cost assigned to the MAIN PRODUCT?

Under the NRV method for by-products, the net realisable value of the by-product (₦180,000) is deducted from total process costs before assigning costs to the main product. Cost of main product = ₦4,500,000 − ₦180,000 = ₦4,320,000. This approach is consistent with IAS 2 (Inventories) principles on cost allocation and ensures the by-product is not separately costed but reduces the burden on the main product.