Ive posted this twice with no answers within 12 hours. Please help. Thank you
Georgia Pacific purchases logs from Cal Christian Timber Farm and processes the logs into three types of lumber products: - Studs for residential buildings (walls, ceilinga) - Decorative pleces (fireplace mantels, beams for cathedral cellings) * - Posts used as support braces (mine support braces, braces for exterior fences on ranch properties) These products are the result of a joint sawmill process that involves removal of bark from the logs, cutting the logs into a wookable size franging from 8 to 16 feet in length), 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: $480,000 - Debarking, Labor and overhead: $50,000 - Sizing, labor and ovetbead: $220,000 - Product cutting Labor and overhead $260,000 - Total joint costs: $1,010,000 Product vields and average sales values on a per-unit basis from the joint process are as follows: The studs are sold as rough-cut lumber after emeriens from the sawmill operation without further processing by Georgia Pacin. Also, the posts require no further processing beyond the splitot point. The decorative pieces nust be planed and further sired after emerging from the sawmill. These addi tional processing costs are $90,000 per month and normalfy results in a loss of 10% of the onits entering the process. Without this planning and wring process, there is still an active intermediate market for the unfinished decorative pieces in which the selling price averages $55 per unit. Required (You must show your calculations) 1. Based on the infornution given for Liverpool Sawrill allocate the foint processing costs of $1.010.000 to the three products using: 1. a. Sales value at splitoff method 2 b. Physical-measure method (volume in units). 3. c. NRV method 2. Prepare an analysis for Lverpool Sawmill that compares processing the decorative pieces further, as it currently does, with selling them as a rough- cut product immediately at splitolf and show the additional profit or loss from processing further