A Lumber Mill Bought a Shipment of Logs for $40,000

question 101

Multiple Choice

A lumber mill bought a shipment of logs for $40,000.When cut,the logs produced a million board feet of lumber in the following grades.Compute the cost to be allocated to Type 1 and Type 2 lumber,respectively,if the value basis is used. Type 1-400,000 bd.ft.priced to sell at $0.12 per bd.ft.
Type 2- 400,000 bd.ft.priced to sell at $0.06 per bd.ft.
Type 3- 200,000 bd.ft.priced to sell at $0.04 per bd.ft.

• A)$16,000;$16,000.
• B)$13,333;$4,444.
• C)$40,000;$24,000.
• D)$24,000;$12,000.
• E)$24,000;$8,000.

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Weekly Salary

A fixed amount of money paid to an employee on a weekly basis as compensation for performed work.

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Resources owned by a business that have economic value and can be converted into cash.