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 $$35,640,000$ of joint production cost in producing $59,400,000$ board feet of Grade A and

$19,800,000$ 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\mathrm{.}70$ per board foot and

Grade B lumber at the split$-$off point for $$0\mathrm{.}50$ per board foot. Alternatively, Grade A lumber can be further processed at a cost of $$0\mathrm{.}75$ per board foot and then sold for $$1\mathrm{.}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 an

Should the additional processing be performed?

Please answer all parts of the question.