1. Oak View produces three main products M-10, M-20 and M-30. It can either be sold at split off or processed further. Oak view

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1. Oak View produces three main products M-10, M-20 and M-30. It can either be sold at split off or processed further. Oak view started a given batch of 1,000 gallons of Chem X material with a cost of $90,000 and conversion cost of $30,000 of which 50% is applied FOH. Three principal products are the output in Dept 1 after split off and two of these products are processed further in Dept 2 for M 10, and Dept 3 for M 20 but only conversion cost is incurred, 50% of which is applied overhead. Products M 10 Units 22,000 Unit Sales Value Addtl Unit Prod Cost $14 $4 M 20 14,000 10 M 30 10,000 12 Ultimate Unit MV $20 $18 Compute for the gross profit of each product using: a) weighted average method and the products are given the following weights of 3:1:2, respectively. b) Net realizable value (sales value at split off) c) Estimated net realizable value d) Entries only for requirement C but only 10,500 units of M 20 were sold. Selling and administrative is 15% of sales. Question: Assuming M 30 has an additional unit product cost of $3 and an ultimate sales price of $15, would it be advisable to process this further? Explain.