Springfield Sawmill, Inc purchases logs from independent timber contractors and processes the logs into three types of lumber products: studs fu residential buildings, decorative pieces for fireplace mantels, and posts used as support braces. These products are the result of a joint sawmill process that involves the removal of bark from the logs, cutting the logs into a workable size, and then cutting the individual products from the logs. The joint process resulted in the following costs and output of products during the month of April 2022: Direct materials (rough timber) Labor and overhead $500,000 700.000 $1,200,000 Total Product yield and average sales value on a per unit basis from the joint process were as follows: Product Studs Monthly Output At Split-off-Point Fully Processed Selling Price 75,000 units $8 100 20,000 units 20 Decorative pieces 5,000 units Posts The studs are sold after emerging from the sawmill operation without further processing. Also, the posts require no further processing beyond the split-off point. The decorative pieces must 3 be further sized after emerging from the sawmill. This additional processing costs $150,000 per month and normally results in a loss of 5% of the units entering the process. Without this sizing process, there is still an intermediate market for the unfinished decorative pieces where the selling price averages $80 per unit. During the month of April, 50,000 studs were sold. There were, however, no ending inventories of Decorative pieces or Posts Required: 1. Based on the information provided, allocate the joint processing costs to the three product lines using a. b Sales value at split off method Estimated NRV method (8 marks) 2. Review Springfield Sawmill's practice to sell Decorative pieces after further sizing and processing them and make your recommendation Show all computations. (4 Marks)