Reference no: EM132633199
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:
Problem a. Which, if any, of products A, B, and C should be processed further and then sold?
Problem b. Keeping in view the answer of "part a", write down your critical feedback to support your answer
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