Question
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
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 $800,000 and results in 65,000 units of MSB and 95,000 units of CBL. Each MSB sells for $10, and each unit of CBL sells for $15.
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 | $ ????? |
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 | $ ??? |
3. Assume the commercial building lumber is not marketable at split-off but must be further planed and sized at a cost of $1,185,000 per production run. During this process, 10,500 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 $300,000 per production run. The braces are then sold for $15.00 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 | $ ??? |
Please show work and make correct answers clear- in chart preferably.
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