I have a cost accounting question **Oregon Forests Joint Production Process**Oregon Forests uses a joint process to manufacture two grades of wood: A and B. During October, the company incurred $48,600,000 of joint production cost in producing 81,000,000 board feet of Grade A and 27,000,000 board feet of Grade B lumber. The company allocates joint cost on the basis of board feet of lumber produced. The company can sell Grade A lumber at the split-off point for $0.70 per board foot and Grade B lumber at the split-off point for $0.50 per board foot. Alternatively, Grade A lumber can be further processed at a cost of $0.75 per board foot and then sold for $1.50 per board foot. No opportunity exists for processing Grade B lumber after split-off.---**Questions****a. Allocation of Joint Cost**How much joint cost should be allocated to Grade A and to Grade B lumber using the physical units method?- Grade A: $ [Input Required]- Grade B: $ [Input Required]**b. Incremental Effect Calculation**1. If Grade A lumber is processed further and then sold, what is the incremental effect on Oregon Forests' net income?- Processing further will result in an [Select Increase/Decrease] of $ [Input Required]2. Should the additional processing be performed?- [Select Yes/No] ---**Note:** - The allocation of joint costs using the physical units method is done by assigning costs based on the proportion of total output in board feet each grade represents.- The incremental effect on net income from further processing Grade A lumber involves calculating additional revenue minus additional processing costs.This exercise illustrates cost allocation and decision-making in joint production processes.

Joint cost: It is the cost of producing two products or services together in a single process. Common raw materials are used and common process is being done to manufacture these products. So, after the products were manufactured the costs should be apportioned to individual product. Sales value at split off: It is the selling price of the products after they were produced and can be separated from each other.