Physical Units Method, Relative Sales-value-at-Split-off Method, Net Realable Value Method, Decision Making Sorimad Sawmil, Inc. (SST), purchases logs from independent timber contractors and processes them into the following three types of lumber products 1. Studs for residencial construction (eg, walls and ceilings) 2. Decorative pieces (e , fireplacemates and beams for cathedral ceilings) 2. Posts used as support braces (eg, mine support braces and braces for exterior fences around ranch properties) These products are the result of a joint sawl process that involves removing bark from the logs, cutting the log into a workable size ranging from to 15 feet in length the type of wood pine, cok, want, or male) and the sire (diameter) of the log. and then cutting the in d ucts from the logs depending The Joint process results in the following costs and output of products during a typical month $500,000 Joint production costs: Materials (rough timber logs) Debarking labor and overhead) Sizing Gabor and overhead 200,000 Product cutting (bor and overhead) Total joint costs $1,000,000 Product vield and average sales value on a per unit basis from the Joint process are as follows: Monthly Output Fully Processed Sales Price 20,000 The studs are sold as rough-cut lumber after emerging from the sawmill operation without the proces by SSL. Ao the posts o n the processing. The decorative pieces must be led and further d er energing from the staw . This adonal processing costs SSE 120,000 per month and normally results in a loss of 10 percent of the units entering the process. Without this niganding process, there is an active intermediate market for the shed decorative pieces where the sale priceverages $0 per unit 1. Based on the information given for Sorimad Saw The allocate the joint processing costs of $1,000,000 to each of the three product lines using the a. Relative sales-value-at-split off method, when required, round decimal values to four places before converting to a percentage. For example,.88049 would be rounded to and entered as 88.35 percent. Monthly Unit Output Sales Price per Unit Relative Sales Value at Split-off Percent of Sales Allocated Joint Costs Studs Decorative pieces Posts (Note: Difference due to rounding) b. Physical units method at stoff Allocated Jol Joint Cost - Studs c. Estimated net realizable value method. When required, round decimal values to four places before converting to a percentage. For example-88349 would be rounded to 8835 and entered as 88.35 percent. Fully Processed Monthly Unit Output Allocated Sales Price per Unit Net Realizable Value Percent of Value Posts (No Derence due to rounding) 2. Prepare analysis for borimad Sawmil, Inc. to compare processing the decorative pieces further as it presently does, with selling the rough cut product immediately at split-off. Senimad Sawmill, Inc. Analysis Report Monthly output DIJON Diferentalne M onotros further eng