Happy manufacturing produces three products A, B, and C from a joint process. Each product may be sold at the split-off point or processes further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Happy manufacturing production sales and costs are here below Details

Product A Product B Product C

Total Units produced and sold 20,000 40,000 15,000

sales value of production $100,000 $120,000 $90,000

Separable costs $40,000 $60,000 $20,000

Total joint costs $120,000

Required Allocate Joint costs to products A, B, and C using the Net Realisable Value method