The joint production cost of the products is 800 alpha has

Reference no: EM13584531

Products Alpha and Beta are joint products. The joint production cost of the products is $800. Alpha has a market (sales) value of $400 at the split-off point. If Alpha is further processed at an additional cost of $600, its new market (sales) value is $1,400. Product Beta has a market (sales) value of $1,200 at the split-off point. If Product Beta is further processed at an additional cost of $300, its new market (sales) value is $1,400.

Using the relative market or sales value method, calculate the joint product cost that would be allocated to Alpha and Beta. Which of the two products should be further processed? Support your decision with relevant calculations. (Points : 30)

Reference no: EM13584531

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