Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. physical measure allocation and sell or process fu

Physical measure allocation and sell or process further Oregon Forests uses a joint process...

80.2K

Verified Solution

Question

Accounting

Physical measure allocation and sell or process further
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 $1.50 per board foot. No opportunity exists for processing Grade B lumber after split-off.
a. How much joint cost should be allocated to Grade A and to Grade B lumber using the physical units method?
Grade A$
Grade B $
b.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 ar
2. Should the additional processing be performed?
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

In C Please *Asked before but all previous answers do not work correctly* 10.6 LAB: Warm up: Parsing...

Programming
Q

minimum 1 reference please define Vasectomy and Tubal Ligation and explain the pro's and con's for...

Medical Sciences
Q

Write a PLC ladder program to describe an application consisting of keeping constant the level of...

Electrical Engineering
Q

prepare a marketing plan for japan? Also explain the important areas taken into consideration while prepare...

General Management
Q

7 A salt is obtained as a reaction between OA a base and water OB...

Biology
Q

Solve the equation using the quadratic formula.2x2 =2x+3*w***Score: 0 of 1Next QuestionThe solution set is...

Basic Math
Q

ind the arc length parameter along the given curve from the point where t 0...

Calculus
Q

You are the Executive Director of a large research institute that is evaluating whether to...

Accounting
Q

Required information [The following information applies to the questions displayed below]...

Accounting
Q

According to a summary of the payroll of Bailik co, $880,000 was subject to the...

Accounting
Q

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing...

Accounting
Q

AC Motors is a sole proprietorship that has taxable income of $94,200. How much additional...

Accounting