Required information Problem 17-27 Joint Costs (LO 17-4, 17-5) [The following information applies to the questions displayed below.] Snake River Sawmill manufactures two lumber products from a joint milling process. The two products developed are mine support braces (MSB) and unseasoned commercial building lumber (CBL). A standard production run incurs joint costs of $430,000 and results in 73,000 units of MSB and 103,000 units of CBL. Each MSB sells for $7, and each unit of CBL sells for $9. Problem 17-27 Part 3 3. Assume the commercial building lumber is not marketable at split-off but must be further planed and sized at a cost of $500,200 per production run. During this process, 11,300 units are unavoidably lost; these spoiled units have no value. The remaining units of commercial building lumber are saleable at $15 per unit. The mine support braces, although saleable immediately at the split-off point, are coated with a tarlike preservative that costs $230,000 per production run. The braces are then sold for $11.50 each. Using the net- realizable-value basis, compute the completed cost assigned to each unit of commercial building lumber. (Round the calculation of "Relative Proportion" to the nearest whole percent. Round your final answer to 2 decimal places.) Cost per unit of CBL
Required information Problem 17-27 Joint Costs (LO 17-4, 17-5) [The following information applies to the questions displayed below.] Snake River Sawmill manufactures two lumber products from a joint milling process. The two products developed are mine support braces (MSB) and unseasoned commercial building lumber (CBL). A standard production run incurs joint costs of $430,000 and results in 73,000 units of MSB and 103,000 units of CBL. Each MSB sells for $7, and each unit of CBL sells for $9. Problem 17-27 Part 3 3. Assume the commercial building lumber is not marketable at split-off but must be further planed and sized at a cost of $500,200 per production run. During this process, 11,300 units are unavoidably lost; these spoiled units have no value. The remaining units of commercial building lumber are saleable at $15 per unit. The mine support braces, although saleable immediately at the split-off point, are coated with a tarlike preservative that costs $230,000 per production run. The braces are then sold for $11.50 each. Using the net- realizable-value basis, compute the completed cost assigned to each unit of commercial building lumber. (Round the calculation of "Relative Proportion" to the nearest whole percent. Round your final answer to 2 decimal places.) Cost per unit of CBL
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
Problem 17-27 Joint Costs (LO 17-4, 17-5)
[The following information applies to the questions displayed below.]
Snake River Sawmill manufactures two lumber products from a joint milling process. The two products developed are
mine support braces (MSB) and unseasoned commercial building lumber (CBL). A standard production run incurs joint
costs of $430,000 and results in 73,000 units of MSB and 103,000 units of CBL. Each MSB sells for $7, and each unit of
CBL sells for $9.
Problem 17-27 Part 3
3. Assume the commercial building lumber is not marketable at split-off but must be further planed and sized at a cost of $500,200
per production run. During this process, 11,300 units are unavoidably lost; these spoiled units have no value. The remaining units of
commercial building lumber are saleable at $15 per unit. The mine support braces, although saleable immediately at the split-off point,
are coated with a tarlike preservative that costs $230,000 per production run. The braces are then sold for $11.50 each. Using the net-
realizable-value basis, compute the completed cost assigned to each unit of commercial building lumber. (Round the calculation of
"Relative Proportion" to the nearest whole percent. Round your final answer to 2 decimal places.)
Cost per unit of CBL](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ca122e4-933e-4e70-88f3-539bf73cf55d%2Fa11af1d3-77f0-4abf-99a0-ebb0c30b5291%2Fq2ipd98_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
Problem 17-27 Joint Costs (LO 17-4, 17-5)
[The following information applies to the questions displayed below.]
Snake River Sawmill manufactures two lumber products from a joint milling process. The two products developed are
mine support braces (MSB) and unseasoned commercial building lumber (CBL). A standard production run incurs joint
costs of $430,000 and results in 73,000 units of MSB and 103,000 units of CBL. Each MSB sells for $7, and each unit of
CBL sells for $9.
Problem 17-27 Part 3
3. Assume the commercial building lumber is not marketable at split-off but must be further planed and sized at a cost of $500,200
per production run. During this process, 11,300 units are unavoidably lost; these spoiled units have no value. The remaining units of
commercial building lumber are saleable at $15 per unit. The mine support braces, although saleable immediately at the split-off point,
are coated with a tarlike preservative that costs $230,000 per production run. The braces are then sold for $11.50 each. Using the net-
realizable-value basis, compute the completed cost assigned to each unit of commercial building lumber. (Round the calculation of
"Relative Proportion" to the nearest whole percent. Round your final answer to 2 decimal places.)
Cost per unit of CBL
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