Physical measure allocation and sell or process further Oregon Forests uses a joint process...
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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 $ of joint production cost in producing board feet of Grade A and 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 splitoff point for $ per board foot and Grade B lumber at the splitoff point for $ per board foot. Alternatively, Grade A lumber can be further processed at a cost of $ per board foot and then sold for $ per board foot. No opportunity exists for processing Grade B lumber after splitoff. a How much joint cost should be allocated to Grade A and to Grade B lumber using the physical units method? Grade $ Grade B $ b 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 Should the additional processing be performed? 
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 $ of joint production cost in producing board feet of Grade A and 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 splitoff point for $ per board foot and Grade B lumber at the splitoff point for $ per board foot. Alternatively, Grade A lumber can be further processed at a cost of $ per board foot and then sold for $ per board foot. No opportunity exists for processing Grade B lumber after splitoff.
a How much joint cost should be allocated to Grade A and to Grade B lumber using the physical units method?
Grade $
Grade B $
b 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
Should the additional processing be performed?
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