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May 11, 2016 at 11:31 AM

Electricity production and byproducts


Dear Gurus,

I need to implement the below process for a client. Need your expertise.

My client has a power generation plant. Where electricity is the final product. The process is as below -

Stage1 - Limestone and Petcoke goes into boiler and steam produces.
Stage2 - Steam from stage1 creates electricity.

My client want to inventorize TPP petcoke which is the by product. But they do not want to show any inventory for steam or electricity.

Q1 . How can I then show TPP petcoke as a byproduct then?

Q2 . The price of TPP petcoke should be deducted from production cost( petcoke + limestone cost). Rest of the amount should be considered as production cost of electricity.