A lumber mill bought a shipment of logs for $49,000. When cut, the logs produced a million board feet of lumber in the following grades. Compute cost to be allocated to Type 1 and Type 2 lumber, respectively, if the value basis is used. (Do not round your intermediate calculations.) Type 1-600,000 bd. ft. priced to sell at $0.20 per bd. ft. Type 2 -400,000 bd. ft. priced to sell at $0.08 per bd. ft. Type 3- 200,000 bd. ft. priced to sell at $0.04 per bd. ft. Multiple Choice $24,000; $24,000. $36,750; $9,800. $32,000; $8,000. $10,944;$2,45o. $49,000; $32,000.

A lumber mill bought a shipment of logs for $49,000. When cut, the logs produced a million board feet of lumber in the following grades. Compute cost to be allocated to Type 1 and Type 2 lumber, respectively, if the value basis is used. (Do not round your intermediate calculations.) Type 1-600,000 bd. ft. priced to sell at $0.20 per bd. ft. Type 2 -400,000 bd. ft. priced to sell at $0.08 per bd. ft. Type 3- 200,000 bd. ft. priced to sell at $0.04 per bd. ft. Multiple Choice $24,000; $24,000. $36,750; $9,800. $32,000; $8,000. $10,944;$2,45o. $49,000; $32,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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