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Physical Units Method, Relative Sales-Value-at-Split-otf Method, Net Realizable Value Method, Decision Making Sonimad Sawmil, InC (SSI), purchases logs from independent timber contractors and processes them

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Physical Units Method, Relative Sales-Value-at-Split-otf Method, Net Realizable Value Method, Decision Making Sonimad Sawmil, 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) 2. Decorative pieces (e.9- fireplace mantels and beams for cathedral ceilings) 3. 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, eutting the logs into a workable siae (ranging from 8 to 16 feet in length), and then cutting the individual products from the logs, depending upon the trpe 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: Product yield and average sales value on a per-unit basis from the joint process are as follows: 5 mote Check My Work uses remaining. The studs are sold as rough-cut lumber after emerging from the sawmill operation without further processing by SSI: Also; the posts require no further month and normally results in a loss of 10 percent of the units entering the process. Without this planing and siaing process, there is stil an active intermediate market for the unfinished decorative pieces where the sales price averages 560 per unit. Required: 1. Based on the information given for Sonimad Sawmill, Inc, aliocate the joint processing costs of $1,000,000 to each of the three product lines using the a. Relative sales-value-at-split-olf method. When requifed, 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. b. Physical units method at split-off. c. Estimated net reaiqable value method. When required, round decimal values to four places before converting to a percentage. For example. , 80349 would be rounded to, 835 and entered as "88.35" percent. 2. Prepare an analysis for Sonimad Sawmil, Inc, to compare processing the decoratove pieces further as at presently does, with seling the rovgh-cul product immediately at split-off. 2. Prepare an analysis for Sonimad Sawmill, Inc, to compare processing the decorative pieces further as it presentiv does, with selling the rough-cut product immediately at split-off. Sonimad Sawmill, Inc. Analysis Report

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