Exercises 1. Asleep Co. processes rough timber to obtain three grades of finished lumber; A, B and C. During the month of May, Asleep incurred total production costs of P300,000 in producing the following: Grade Thousand Board Feet Selling Price per 1,000 Board Feet A B 200 300 P200 100 C 500 150 Required: Prepare the journal entry to transfer the finished lumber to separate inventory accounts for each product if joint costs are allocated on: a. Market value method b. Physical unit method