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please help asap! Physical Units Method, Relative Sales - Value - at - Split - off Method, Net Realizable Value Method, Decision Making Sonimad Sawmill,
please help asap! Physical Units Method, Relative SalesValueatSplitoff Method, Net Realizable Value Method, Decision Making
Sonimad Sawmill, Inc. SSI purchases logs from independent timber contractors and processes them into the following three types of lumber products:
Studs for residential construction eg walls and ceilings
Decorative pieces eg fireplace mantels and beams for cathedral ceilings
Posts used as support braces eg mine support braces and braces for exterior fences around ranch properties type 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:
Joint production costs:
Product yield and average sales value on a perunit basis from the joint process are as follows:
decorative pieces where the sales price averages $ per unit.
Based on the information given for Sonimad Sawmill, Inc., allocate the joint processing costs of $ to each of the three product lines using the:
Note: Difference due to rounding.
b Physical units method at splitoff.
Note: Difference due to rounding.
Prepare an analysis for Sonimad Sawmill, Inc., to compare processing the decorative pieces further as it presently does, with selling the roughcut product immediately at splitoff.
Sonimad Sawmill, Inc.
Analysis Report
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