Adirondack Bat Co. processes rough timber to obtain three grades of lumber, A, B, and C that are then made into baseball bats. The company allocates joint costs to the joint products on the basis of the sales value at the split-off point. During the month of May, Adirondack incurred total joint production costs of $300,000 in producing the following:

1. Make the journal entry to transfer the finished lumber to separate work in process inventory accounts for each product.
2. What would be the allocation of the joint costs if the company were to use the physical measure method?

Thousanod Board Feet 200 300 500 Sales Value per 1,000 Board Feet $200 100 150 Grade