Reference no: EM132986716
Timberlake Sawmill manufactures two lumber products from a joint milling process. The two products developed are mine support braces (MSB) and unseasoned commercial building lumber (CSL). A standard product run incurs joint costs of $300,000 and results in 60,000 units of MSB and 90,000 units of CBL. Each unit of MSB sells for $2 and each unit of CBL sells for $4.
Required:
Problem a. Calculate the amount of joint costs allocated to each product on a physical-units basis.
Problem b. Calculate the amount of joint costs allocated to each product on a relative-sales value basis.
Problem c. Assume the commercial building lumber is not marketable at split-off but must be further planed and sized at a cost of $200,000 per production run. During this process, 10,000 units are unavoidably lost; these spoiled units have no value. The remaining units of commercial building lumber are saleable at $10 per unit. The mine support braces, although saleable immediately at the split-off point, are coated with a tarlike preservative that costs $100,000 per production run. The braces are then sold for $5 each. Using the net-realizable-value basis, calculate the amount of joint costs allocated to each product, and compute the completed cost assigned to each unit of commercial building lumber.
Problem d. If Timberlake Sawmill chose not to process the mine support braces beyond the split-off point, the contribution from the joint milling process would increase or decrease by what amount?
|
Nonverbal communication in daily communications
: Explain the value of nonverbal communication in daily communications.
|
|
Modeling continuous systems and combining subsystems
: Modeling Continuous Systems and Combining Subsystems - create the last model, Throttle and to combine all your models to form a complete automatic throttle
|
|
Demands for network and internet access at business
: You are frequently asked to find solutions to increasing demands for network and Internet access at a business.
|
|
Determine the tax consequences of this redemption
: Taylor Ltd. issued 176,000 common shares to Mr. Taylor in return for $3,960,000 in cash. Determine the tax consequences of this redemption
|
|
Calculate amount of joint costs allocated to each product
: Calculate the amount of joint costs allocated to each product, and compute the completed cost assigned to each unit of commercial building lumber.
|
|
Calculate total relevant cost to make and net cost to buy
: Sandhill, Inc., has offered to sell 7,600 units of part 231 to Flint for $33 per unit. Calculate total relevant cost to make and net cost to buy
|
|
Calculate the price elasticity of demand for the company
: Calculate the price elasticity of demand for the company's product? What kind of information do you infer from it. If the company decides to increase sales
|
|
How much can he equally withdraw
: Ten years from now, Matthew plans use the money to start a business. How much can he equally withdraw for 5 quarters
|
|
Should she accept the one-payment settlement
: Should she accept the one-payment settlement of $300,000? Assuming that the money can be invested at 9% annual interest. Why
|