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1. Joint processing costs (including the cost of oak trees): $300,000. 2. Separable products at the split off point: - Raw select oak: 30,000 board
1. Joint processing costs (including the cost of oak trees): $300,000. 2. Separable products at the split off point: - Raw select oak: 30,000 board feet - Raw white oak: 50,000 board feet - Raw knotty oak: 20,000 board feet 3. Final products produced: - Select oak: 25,000 board feet at $16 per board foot - White oak: 40,000 board feet at $9 per board foot - Knotty oak: 15,000 board feet at $? per board foot 3. Ending inventory: - Select oak: 1,000 board feet - White oak: 2,000 board feet - Knotty oak: 500 board feet 4. Separable processing costs - For select oak: $60,000 - For white oak: $90,000 - For knotty oak: $15,000 There is an active market for raw oak products. Selling prices available in February 2013 were: - Raw select oak: $3 per board foot - Raw white oak: $4 per board foot - Raw knotty oak: $3 per board foot
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