I need help in Part 2 and Part 3 of this question.

LO 2 1. a. Joint costs allc posts, $307,692 16-27 Joint cost allocation, process further or sell. Lanigan Lumber Inc. (Lanigan) purchases logs from independent timber contractors and processes the logs into three types of lumber products: Studs for residential buildings (walls, ceilings) Decorative pieces (fireplace mantels, beams for cathedral ceilings) Posts used as support braces (mine support braces, braces for exterior fences on ranch properties) 664 664 Chice yielded th . Chapter 16 Cost Allocation: Joint Products and Byproducts These products are the result of a joint sawmill process that involves removal of bark from the lo cutting the logs into a workable size, and then cutting the individual products from the logs. The joint process results in the following costs of products for a typical month: Direct materials (rough timber logs) $ 500,000 Debarking (labour and overhead) 50,000 Sizing (labour and overhead) 200,000 Product cutting (labour and overhead) 250,000 $1,000,000 Total joint costs Product yields and average sales values on a per-unit basis from the joint process are as follows: Prod Proc - Pro Required 1. Cor for a. b. C 2. C tr re Product Studs Decorative pieces Monthly Output of Materials at Splitoff Point 75,000 units 5,000 units 20,000 units Fully Processed Selling Price $ 8 100 16-29 Comp Produ Supe Posts 20 beg fur The studs are sold as rough-cut lumber after emerging from the sawmill operation without further processing by Lanigan. Also, the posts require no further processing beyond the splitoff point . The decore. tive pieces must be planed and further sized after emerging from the sawmill. This additional processing costs $100,000 per month and normally results in a loss of 10% of the units entering the process. Without this planning-and-sizing process, there is still an active intermediate market for the unfinished decorative pieces in which the selling price averages $60 per unit. Required 1. Based on the information given for Lanigan Lumber, allocate the joint processing costs of $1,000,000 to the three products using a. Sales value at splitoff method b. Physical measure method (volume in units) c. NRV method 2. Prepare an analysis that compares processing the decorative pieces further, as is current practice, with selling them as a rough-cut product immediately at splitoff. 3. Assume the company announced that in six months it will sell the unfinished decorative pieces at split off due to increasing competitive pressure. Identify at least three types of likely behaviour that will be demonstrated by the skilled labour in the planning-and-sizing process as a result of this announce- ment. Include in your discussion how this behaviour could be influenced by management