See attached homework problem. I need to know how do you compute the answer for question 1a. I understand how they got the "sales value of total production at splitoff point", but not for "weighting" and "joint costs allocated". For example, the studs weighting is 46.1539% and the joint costs allocated is $461,539. How were these answers acquired?

AC315 Accounting Ron D. Knapp Cost Homework Problem 16-29 - WK6 1629: Jointcost allocation, process further or sell. (CMA, adapted) Sonimad Sawmill, Inc. (SSI), purchases logs from independent timber contractors and processes the logs into three types of lumber products: Studs for residential buildings (walls, ceilings) Decorative pieces (fireplace mantels, beams for cathedral ceilings) 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 workable size (ranging 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) Debarking (labor and overhead) Sizing (labor and overhead) Product cutting (labor and overhead) $ 500,000 $ 50,000 $ 200,000 $ 250,000 Total joint costs $ 1,000,000 Products yields and average sales values on a perunit basis from the joint process are as follows: Monthly Output of Fully Processed Materials at Splitoff Selling Price Point Product Studs 75,000 units $ 8 Decorative pieces 5,000 units $ 100 Posts 20,000 units $ 20 The studs are sold as roughcut lumber after emerging from the sawmill operation without further processing by SSI. Also, the posts require no further processing beyond the splitoff point. The decorative pieces must be planed and further sized 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 planning and sizing process, there is still an active intermediate market for the unfinished decorative pieces in which the selling price averages $60 per unit. Required AC315 Accounting Ron D. Knapp Cost 1. Based on the information given for Sonimad Sawmill, allocate the joint processing costs of $1,000,000 to the three products using, (Pg 576581): a. Sales value at splitoff method. Product Fully Process ed Selling Price Monthly Output of Materials at Splitoff Point (1) x Studs Decorative pieces 75,000 units x Posts 20,000 units x x = 46.1539% $461,539 $500,000 23.0769% $230,769 = $20 $600,000 = $100 (3) = $8 $400,000 30.7692% 100.0000% $307,692 $1,000,00 0 100,000 units Totals Weightin g Joint Costs Allocate d $1,500,000 5,000 units (2) Sales Value of Total Production at Splitoff Point b. Physicalmeasure method (volume in units). Product Physical Measure of Total Production Weightin g Joint Costs Allocate d Studs Decorative pieces 75,000 75% $750,000 5,000 5% $50,000 Posts 20,000 20% $200,000 $1,000,00 0 1 Totals 00,000 100% c. NRV method. 2. Prepare an analysis for Sonimad Sawmill that compares processing the decorative pieces further, as they currently do, with selling them as a rough-cut product immediately at split-off, (Pg 583). 3. Assume Sonimad Sawmill announced that in six months it will sell the unfinished decorative pieces at split off due to increasing competitive pressure. Identify at least three types of likely behavior that will be demonstrated by the skilled labor in the planningandsizing process as a result of this announcement. Include in your discussion how this behavior could be influenced by management. I would say that I would have to look for a job somewhere else for I would think this would lead to less morale and a lower quality product. Management could provide me with job relocation or offer me more pay, such as a bonus. Most important probably would be to communicate to me better, such as explaining to what is the company's change to sell the unfinished decorative pieces, this would help me better understand the company's operation due to increasing competitive pressure (of course we are assuming I am an employee of Sonimad Sawmill. AC315 Accounting Ron D. Knapp Cost AC315 Accounting Ron D. Knapp Cost Homework Problem 16-29 - WK6 1629: Jointcost allocation, process further or sell. (CMA, adapted) Sonimad Sawmill, Inc. (SSI), purchases logs from independent timber contractors and processes the logs into three types of lumber products: Studs for residential buildings (walls, ceilings) Decorative pieces (fireplace mantels, beams for cathedral ceilings) 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 workable size (ranging 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) Debarking (labor and overhead) Sizing (labor and overhead) Product cutting (labor and overhead) $ 500,000 $ 50,000 $ 200,000 $ 250,000 Total joint costs $ 1,000,000 Products yields and average sales values on a perunit basis from the joint process are as follows: Monthly Output of Fully Processed Materials at Splitoff Selling Price Point Product Studs 75,000 units $ 8 Decorative pieces 5,000 units $ 100 Posts 20,000 units $ 20 The studs are sold as roughcut lumber after emerging from the sawmill operation without further processing by SSI. Also, the posts require no further processing beyond the splitoff point. The decorative pieces must be planed and further sized 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 planning and sizing process, there is still an active intermediate market for the unfinished decorative pieces in which the selling price averages $60 per unit. Required AC315 Accounting Ron D. Knapp Cost 1. Based on the information given for Sonimad Sawmill, allocate the joint processing costs of $1,000,000 to the three products using, (Pg 576581): a. Sales value at splitoff method. Product Fully Process ed Selling Price Monthly Output of Materials at Splitoff Point (1) x Studs Decorative pieces 75,000 units x Posts 20,000 units x x = 46.1539% $461,539 $500,000 23.0769% $230,769 = $20 $600,000 = $100 (3) = $8 $400,000 30.7692% 100.0000% $307,692 $1,000,00 0 100,000 units Totals Weightin g Joint Costs Allocate d $1,500,000 5,000 units (2) Sales Value of Total Production at Splitoff Point b. Physicalmeasure method (volume in units). Product Physical Measure of Total Production Weightin g Joint Costs Allocate d Studs Decorative pieces 75,000 75% $750,000 5,000 5% $50,000 Posts 20,000 20% $200,000 $1,000,00 0 1 Totals 00,000 100% c. NRV method. 2. Prepare an analysis for Sonimad Sawmill that compares processing the decorative pieces further, as they currently do, with selling them as a rough-cut product immediately at split-off, (Pg 583). 3. Assume Sonimad Sawmill announced that in six months it will sell the unfinished decorative pieces at split off due to increasing competitive pressure. Identify at least three types of likely behavior that will be demonstrated by the skilled labor in the planningandsizing process as a result of this announcement. Include in your discussion how this behavior could be influenced by management. I would say that I would have to look for a job somewhere else for I would think this would lead to less morale and a lower quality product. Management could provide me with job relocation or offer me more pay, such as a bonus. Most important probably would be to communicate to me better, such as explaining to what is the company's change to sell the unfinished decorative pieces, this would help me better understand the company's operation due to increasing competitive pressure (of course we are assuming I am an employee of Sonimad Sawmill. AC315 Accounting Ron D. Knapp Cost