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HASF Corporation manufactures products A, B, and C from a joint process. Joint costs are allocated on the basis of relative sales value at the
HASF Corporation manufactures products A, B, and C from a joint process. Joint costs are allocated on the basis of relative sales value at the end of the joint process. ( 02 marks ) | |||||
Additional information for Deaton Corporation follows: | |||||
A | B | C | Total | ||
Units produced | 12,000 | 8,000 | 4,000 | 24,000 | |
Joint costs | 144,000 | 60,000 | 36,000 | 240,000 | |
Sales value before additional processing | 240,000 | 100,000 | 60,000 | 400,000 | |
Additional costs for further processing | 28,000 | 20,000 | 12,000 | 60,000 | |
Sales value if processed further | 280,000 | 120,000 | 70,000 | 470,000 | |
Required Which, if any, of products A, B, and C should be processed further and then sold? ( 02 marks ) | |||||
sales | 240,000 | 100,000 | 60,000 | ||
Procesed further | 252,000 | 100,000 | 58,000 | ||
Which product process further | |||||
Which product sell right now |
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