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 $410,000 and results
in 71,000 units of MSB and 101,000 units of CBL. Each MSB sells for
$5, and each unit of CBL sells for $13.
- Assume the commercial building lumber is not marketable at
split-off but must be further planed and sized at a cost of
$471,400 per production run. During this process, 11,100 units are
unavoidably lost; these spoiled units have no value. The remaining
units of commercial building lumber are saleable at $13.00 per
unit. The mine support braces, although saleable immediately at the
split-off point, are coated with a tarlike preservative that costs
$210,000 per production run. The braces are then sold for $10.50
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.)