Sonimad sawmill manufactures two lumber products from a

Assignment Help Accounting Basics

Reference no: EM13481859

Sonimad Sawmill manufactures two lumber products from a joint milling process. The two products developed are mine support braces and unseasoned commercial building lumber. A standard production run incurs joint costs of $300,000 and results in 60,000 units of MSB and 90,000 units of CBL. Each unprocessed unit of MSB sells for $2 per unit and each unprocessed unit of CBL sells for $4 per unit.If the CBL is processed further at a cost of $200,000, it can be sold at $10 per unit but 10,000 units are unavoidably lost.

The MSB units can be coated with a preservative at a cost of $100,000 per production run and then sold for $3.50 each.a. If no further work is done after the initial milling process, calculate the cost of CBL using physical quantities to allocate the joint cost.b. If no further work is done after the initial milling process, calculate the cost of MSB using relative sales value to allocate the joint cost.c. Should MSB and CBL be processed further or sold immediately after initial milling?

Reference no: EM13481859

Questions Cloud

Arrow industries employs a standard cost system in which : arrow industries employs a standard cost system in which direct materials inventory is carried at standard cost. arrow

How do i do the market-related asset value to compute : how do i do the market-related asset value to compute theexpected return and for the corridor amoritization. i wasable

The alphonse company allocates fixed overhead costs by : the alphonse company allocates fixed overhead costs by machine hours and variable overhead costs by direct labor hours.

Which product should the company process beyond the : company produces three joint products. at the split offpoint three basic prodcuts emerge ab and c. each productcan be

Sonimad sawmill manufactures two lumber products from a : sonimad sawmill manufactures two lumber products from a joint milling process. the two products developed are mine

At december 312007 the general ledger of hoffman electric : at december 312007 the general ledger of hoffman electric had the following account balances.all adjusting entries

On april 1 2012 prince company assigns 500000 of its : on april 1 2012 prince company assigns 500000 of its accounts receivable to the third national bank as collateral for a

The balance in the prepaid insurance account before : the balance in the prepaid insurance account before adjustment at the end of the year is 11500. journalize the

The controller of a small private college is complaining : the controller of a small private college is complaining about the amount of work she is required to do at the

User Account

All Pages