Figure 6-6
Suppose That a Sawmill Processes Logs into Four

question 11

Multiple Choice

Figure 6-6
Suppose that a sawmill processes logs into four grades of lumber totaling 500,000 board feet as follows at a joint cost of £300,000: $$\begin{array} { l c c } \text { Grade } & \text { Board Feet } & \text { Final Sales Value } \\\text { First and second } & 75,000 & £ 56,250 \\\text { No. } 1 \text { common } & 200,000 & 180,000 \\\text { No. } 2 \text { common } & 100,000 & 105,000 \\\text { No. } 3 \text { common } & 125,000 & 127,500\end{array}$$
-Refer to Figure 6-6. What amount of joint costs will be allocated to No. 2 common using the constant gross margin percentage method?

• A)£300,000
• B)£37,800
• C)£67,200
• D)£192,000

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Definitions:

Greenhouse Gases

Gases in Earth's atmosphere that trap heat, including carbon dioxide and methane, contributing to global warming and climate change.

Sediment

Particles of rock, organic material, or minerals that are transported and deposited by wind, water, or ice, often forming sedimentary layers.

Hydroelectric Dam

A structure built across a river to hold back water for the purpose of generating electricity through the movement of water.

Permeable Rocks

Rocks that have connected spaces or pores, allowing fluids to pass through them, critical in the study of groundwater flow and hydrocarbon reservoirs.