3. Our Company Builds Three 3 Furniture Products: Poplar, Birch, And Pine From A Joint Process. Joint-Process Costs In 2007 Were $3,000,000. Additional Information Regarding The Three Products Is As Follows: Product I Poplar Birch Pine Board Feet Produced 1.200.000 600.000 1.800.000 Sales Value At Split-Off $36,000,000 $24,000,000 $72,000,000 Sales Value If

 

3. Our company builds three 3 furniture products: Poplar, Birch, and Pine from a joint process. Joint-process costs in 2007 were $3,000,000. Additional information regarding the three products is as follows: Product Board feet Sales Value at Sales Value if Additional produced Split-Off processed further processing costs Poplar 1,200,000 $36,000,000 $40,000,000 $ 2,000,000 Birch 600,000 $24,000,000 $32,000,000 $10,000,000 Pine 1,800,000 $72,000,000 $75,000,000 $ 6,000,000 A. Assuming that joint-product costs are allocated using the net-realizable-value method, what were the total costs of Birch? a. $10,545,455 b. $511,500 c. $10,511,500 d. $10,000,000 B. Based on the cost information provided, Poplar should be: a. Sold at the split-off point b. Processed further for an incremental profit of $4,000,000 c. Processed further for an incremental profit of $2,000,000 d. Either be sold at split-off point or processed further, depending upon how joint product costs are allocated