Cost Accounting.

Question One S Mohawk Valley (MV) Lumber manufactures pine boards. In the process of producing these boards, MV Lumber creates a significant amount of woodscraps which are used for hamster bedding. MV Lumber has the option of further producing the pine boards into premium boards and the woodscraps into plywood. The information related to pine boards, woodscraps, premium boards, and plywood is listed below: Joint Costs $ 600,000 Separable Costs (Premium Boards) 150,000 Separable Costs (Plywood) 300,000 Premium Pine Boards Woodscraps Plywood 5 Boards Beginning Inventory (Pounds) $ $ $ 3 Production (Pounds) 200,000 50,000 190,000 45,000 Sales (Pounds) 160,000 40,000 0 Transfer for Further Processing (Pounds) 200,000 50,000 1 Selling Price per Pound 3.00 2.00 5.00 15.00 2 Part One Calculate MV Lumber's gross-margin percentage for premium boards and plywood when joint costs are 3 allocated using the sales value at splitoff method. 14 Allocation of Joint Costs 15 Pine Boards Woodscraps Total 16 Sales Value at Split-off Point 17 Weighting 18 19 Joint Costs Allocated 20 21 MV Lumber Product-line Income Statement 23 Period Ended December 31, 20xx Premium 24 Boards Plywood Total 25 Sales Revenue MV (Template) Ready 22