c.16Q3Need help Hoover Sawmill, Inc., (HSI), purchases logs from indeperremoval of bark from the logs, cutting the logs into a worloducts are the result of a joint sawmill process that involvese logs.(Click the icon to view the joint cost information.)The studs are sold as rough-cut lumber after emerging from the sawmill operationwithout further processing by Hoover Sawmill. Also, the posts require no furtherprocessing beyond the splitoff point. The decorative pieces must be planed andfurther sized after emerging from the sawmill. This additional processing costs$115,000 per month and normally results in a loss of 10% of the units entering theprocess. Without this planing and sizing process, there is still an activeintermediate market for the unfinished decorative pieces in which the selling priceaverages $65 per unit.(Click the icon to view additional information.)Requirementsa) Sales value at splitoff method, (b) Physical-measure methodPer Unit InformationBased on the information given for Hoover Sawmill, alloprocessing costs of $1,060,000 to the three products usPrintDoneа.Sales value at splitoff methodThe joint process results in the following costs of products for atypical month:b. Physical-measure method (volume in units)Product yields and average sales values on a per-unitbasis from the joint process are as follows:с.NRV methodPrepare 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.Direct materials (rough timber logs)510,000Monthly OutputFully ProcessedSelling Priceof Materials atDebarking (labor and overhead)65,000ProductSplitoff PointAssume Hoover Sawmill announced that in 6 months it will sell theSizing (labor and overhead)220,000Studs78,000 units $7unfinished decorative pieces at splitoff due to increasing competitivepressure. Select three types of likely behavior that will be demonstrated bythe skilled labor in the planing-and-sizing process as a result of thisannouncement. How could this behavior be influenced by management?265,000Product cutting (labor and overhead)Decorative pieces4,000 units80$ 1,060,000Total joint costsPosts28,000 units22 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.E (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 $1,060,000 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 $1,060,000 to the three products using the Sales value at splitoff method. (Round the weights to four decimal places.)StudsDecorative piecesPostsTotalMonthly unit outputSelling price per unitSales value of total production atsplitoff

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

Hoover Sawmill, Inc., (HSI), purchases logs from indeper removal of bark from the logs, cutting the logs into a work E (Click the icon to view the joint cost information.) þducts are the result of a joint sawmill process that involves e logs. The studs are sold as rough-cut lumber after emerging from the sawmill operation without further processing by Hoover Sawmill. 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 $115,000 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 active intermediate market for the unfinished decorative pieces in which the selling price averages $65 per unit. A (Click the icon to view additional information.) Requirements a) Sales value at splitoff method, (b) Physical-measure method Per Unit Information Based on the information given for Hoover Sawmill, allo processing costs of $1,060,000 to the three products us Print Done a. Sales value at splitoff method b. Physical-measure method (volume in units) c. NRV method The joint process results in the following costs of products for typical month: Product yields and average sales values on a per-unit basis from the joint process are as follows: Prepare an analysis for Hoover Sawmill that compares processing the decorative pieces further, as it currently does, with selling them as a rough-cut product immediately at splitoff. Direct materials (rough timber logs) 2$ 510,000 Monthly Output of Materials at Fully Processed Splitoff Point Debarking (labor and overhead) 65,000 Product Selling Price Assume Hoover Sawmill announced that in 6 months it will sell the Sizing (labor and overhead) 220,000 78,000 units $ Studs 7 unfinished decorative pieces 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. How could this behavior be influenced by management? 265,000 Product cutting (labor and overhead) Decorative pieces 4,000 units 80 $ 1,060,000 Total joint costs Posts 28,000 units 22