C16Q3Need help The studs are sold as rough-cut lumber after emerging from the sawmill operation without further processing byHooverSawmill. 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$120,000per 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 active intermediate market for the unfinished decorative pieces in which the selling price averages$60per unit. X ee types of lumber products. These products are the result of a joint sawncutting the individual products from the loasRequirementsPer Unit Information1.Based on the information given for Hoover Sawmill, allocate the jointprocessing costs of $1,050,000 to the three products using:Sales value at splitoff methodProduct yields and average sales values on a per-unitbasis from the joint process are as follows:а.b. Physical-measure method (volume in units)(bс.NRV methodMonthly Outputof Materials atFully ProcessedSelling Price2.Prepare an analysis for Hoover Sawmill that compares processing thedecorative pieces further, as it currently does, with selling them as arough-cut product immediately at splitoff.ProductSplitoff PointStuds74,000 units $103.Assume Hoover Sawmill announced that in 6 months it will sell theDecorative pieces10,000 units80unfinished decorative pieces at splitoff due to increasing competitivepressure. Select three types of likely behavior that will be demonstrated bythe skilled labor in the planing-and-sizing process as a result of thisannouncement. How could this behavior be influenced by management?Posts18,000 units16PrintDonehריו Hoover Sawmill, Inc., (HSI), 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 involvesremoval 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.(Click the icon to view the joint cost information.)(Click the icon to view the per-unit information.)(Click the icon to view additional information.)Read the requirements.Requirement 1. Based on the information given for Hoover Sawmill, allocate the joint processing costs of $1,050,000 to the three products using the (a) Sales value at splitoff method, (b) Physical-measure method(volume in units), and (c) NRV method.a. Begin by allocating the joint processing costs of $1,050,000 to the three products using the Sales value at splitoff method. (RoundJoint Cost InformationStudsDecorative piecesPostsTotalMonthly unit outputThe joint process results in the following costs of products for atypical month:Selling price per unitSales value of total production atsplitoffDirect materials (rough timber logs)525,000Debarking (labor and overhead)50,000Enter any number in the edit fields and then click Check Answer.Sizing (labor and overhead)215,000?260,000Product cutting (labor and overhead)partsremainingClear All$ 1,050,000Total joint costs

Joint cost: It is the cost of producing two products or services together in a single process.…

Answered: C16Q3 Need help The studs are sold…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q