eBook Physical Units Method, Relative Sales-Value-at-Split-off Method, Net Realizable Value Method, Dedsion Making Sonimad Sawmill, Inc. (SSI), purchases logs from independent timber contractors and processes them into the following three types of lumber products: 1. Studs for residential construction (e.g, walls and ceilings) Decorative pieces (e.g. fireplace mantels and beams for cathedral ceilings) a. Posts used as support braces (e.g, mine support braces and braces for exterior fences around ranch properties) These products are the result of a joint sawmill process that involves removing bark from the logs, cutting the logs into a workable size (ranging from 8 to 16 feet in length), and then cutting the individual products from the logs, depending upon the type of wood (pine, oak, walnut, or maple) and the size (diameter) of the log. The joint process results in the following costs and output of products during a typical month: Joint production costs: $500,000 60,000 200,000 240,000 $1,000,000 Materials (rough timber logs) Debarking(labor and ovethead) Sizing (labor and overhead) Product cutting (labor and overhead) Total joint costs Product yield and average sales value on a per-unit basis from the joint process are as follows Monthly Fully Processed Output Sales Price Product Studs 80,000 Previous Next Check My Work 241 PM up