A Sawmill Processes Logs into Four Grades of Lumber Totalling

question 31

Multiple Choice

A sawmill processes logs into four grades of lumber totalling 500,000 board metres as follows at a joint cost of $300,000: $\begin{array}{lcc}\text { Grade } & \text { Board Metres } & \text { Final Sales Value }\\\text { First and second } & 75,000 & \$ 56,250 \\\text { No. } 1 \quad\text { common } & 200,000 & 180,000 \\\text { No. } 2 \quad\text { common } & 100,000 & 105,000 \\\text { No. } 3 \quad\text { common } & 125,000 & 127.500\end{array}$

-What amount of joint costs will be allocated to No.2 common using the constant gross margin percentage method?

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

---

Definitions:

Outsourced

Refers to the practice of hiring external parties or organizations to perform services or create goods that traditionally were performed in-house.

Personal Connections

Relationships or associations formed with other individuals based on personal or emotional bonds.

Analytical Work

The process of breaking down complex information into smaller parts to understand it better, often used in problem-solving and decision-making.

Executive Function

A set of cognitive processes used in regulating behavior, including working memory, flexible thinking, and self-control.