Allegheny River Sawmill manufactures two lumber products from a joint milling process. The two products developed are mine support braces (MSB) and unseasoned commercial building lumber (CBL). A standard production run incurs joint costs of $880,000 and results in 65,000 units of MSB and 103,000 units of CBL. Each MSB sells for $10, and each unit of CBL sells for $15.

Problem 17-30 Part 1

Required:

1.

Calculate the amount of joint cost allocated to commercial building lumber (CBL) on a physical-units basis. (Round the calculation of relative proportions to four decimal places.)

Joint cost allocated to CBL

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2.

Calculate the amount of joint cost allocated to the mine support braces (MSB) on a relative-sales value basis. (Round the calculation of relative proportions to two decimal places of percentage.)

Joint cost allocated to MSB

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3.

Assume the commercial building lumber is not marketable at split-off but must be further planed and sized at a cost of $1,281,000 per production run. During this process, 11,300 units are unavoidably lost; these spoiled units have no value. The remaining units of commercial building lumber are saleable at $30.00 per unit. The mine support braces, although saleable immediately at the split-off point, are coated with a tarlike preservative that costs $370,000 per production run. The braces are then sold for $17.00 each. Using the net-realizable-value basis, compute the completed cost assigned to each unit of commercial building lumber. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Cost per unit of CBL

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