Question No. 4

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. Additional information for HASF are as 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:

a. Which, if any, of products A, B, and C should be processed further and then sold? (1 marks)

b. Keeping in view the answer of "part a", write down your critical feedback to support your answer (Word limit Max 200