Quinlan Sawmill, Inc., (08), purchases logs from independent timber contractors and processes the logs into three types of lumber products. These products are the result of a joint sawmill process that involves removal of bark from the logs, cutting the logs into a workable size (ranging from 8 to 10 feet in length), and then cutting the individual products from the logs. Joint Cost Information Per Unit Information Additional Information The joint process results in the following costs of products for a typical month Direct materials (rough timber logs) Debarking (labor and overhead) Sizing (labor and overhead) $ 495,000 Monthly Output 45,000 Product 220,000 Studs 280,000 Product cutting (labor and overhead) $ 1,020,000 Total joint costs Decorative pieces Posts 74,000 units 5 7,000 units 25,000 units Product yields and average sales values on a per-unit basis from the joint process are as follows: of Materials at Fully Processed Splitol Point Selling Price 6 85 28 The studs are sold as rough-cut lumber after emerging from the sawmill operation without further processing by Quinlan Sawmil. Also, the posts require no further processing beyond the splitoff point. The decorative 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 planing and sizing process, there is still an acive intermediate market for the unfinished decorative pieces in which the selling price averages $60 per unit. Requirement 1. Based on the information given for Quinian Sawmill, allocate the joint processing costs of $1,020,000 to the three products using the (8) Sales value at splitoff method, (b) Physical-messure method (volume in units), and (c) NRV method. a. Begin by allocating the joint processing costs of $1,000,000 to the three products using the Sales value at splitoff method. (Round the weights to four decimal places) Monthly unit output Selling price per unit Sales value of total production at splitoff Studs Decorative pieces Posts Total Weighting Joint costs allocated b. Based on the information given for Quinten Sawmill, allocate the joint processing costs of $1,020,000 to the three products using the Physical-measure method (volume in units). (Round the weights to four decimal places.) Decorative pieces Posts Total Studs Physical measure of total production Weighting Joint costs allocated c. Based on the Information given for Quinlan Sawmill, alocate the joint processing costs of $1,020,000 to the three products using the NRV method. (Round the weights to four decimal places.) Studs Decorative pieces Posts Totul Monthly units of total production Fully processed selling price per unit Net realizable value at splitoff Weighting Joint costs allocated Requirement 2. Prepare an analysis for Quinlan Sawmill that compares processing the decorative places further, as it currently does, with selling them as a rough-out product immediately at splitoft (Use parentheses or a minus sign for decreases in contribution.) Units Dollars Monthly unit output Less: Normal further processing shrinkage Units available for sale Final sales value Less: Sales value at splitoff Incremental revenue Less: Further processing costs Increase decrease) in contribution from further processing Requirement 3. Assume Quinlan Sawmill announced that in six months it will sell the unfinished decorative places at splitoff due to increasing competitive pressure. Select three types of likely behavior that will be demonstrated by the skilled labor in the planing-and-sizing process as a result of this announcement Behavior that may be demonstrated by the skilled labor in the planing-and-sizing process include the following: Management actions that could improve this behavior include the following Improve communication by giving the workers: and align rewards with goals. job relocation and internal job transfers. The company can offer incentive bonuses to The company could