Products Alpha and Beta are joint products. Joint production cost of products is given as $800. Alpha has the market (sales) value of $400 at split-off point. If Alpha is further processed at the extra cost of $600, new market (sales) value is given $1,400. Product Beta has the market (sales) value of $1,200 at split-off point. If Product Beta is further processed at the extra cost of $300, its new market (sales) value is $1,400.
Using relative market or sales value method, compute joint product cost which would be assigned to Alpha and Beta. Which of the 2 products must be further processed? Support the decision with suitable calculations.