A Sawmill Bought a Shipment of Logs for $40,000 $\begin{array} { l l l } & \text { Type1 } & \text { Type 2 } \\\end{array}$

question 130

Short Answer

A sawmill bought a shipment of logs for $40,000.When cut,the logs produced 1 million board feet of lumber in the following grades:
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.
How much cost should be allocated to Type 1 and Type 2,respectively?
$\begin{array} { l l l } & \text { Type1 } & \text { Type 2 } \\\end{array}$
A. $\begin{array} { l l l } & \$ 16,000 & \$ 16,000 \\\end{array}$
B. $\begin{array} { l l l } & \$ 13,333 & \$ 4,444 \\\end{array}$
C. $\begin{array} { l l l } & \$ 40,000 & \$ 24,000 \\\end{array}$
D. $\begin{array} { l l l } &\$ 24,000 & \$ 12,000 \\\end{array}$
E. $\begin{array} { l l l } &\$24,000&\$ 8,000\end{array}$

Calculate net amount payable to employees considering hourly rates, overtime, and withholdings.

Comprehend the components and effects of employer payroll taxes on financial statements.

Recognize the treatment and recording of employee benefits, such as vacation pay and pension rights.

Understand the fundamentals of pension plans and their financial statement implications.

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Definitions:

Positron Emission Tomography

An imaging technique used in medical diagnostics that detects pairs of gamma rays emitted indirectly by a positron-emitting radionuclide.

Electrical Stimulation

The application of electrical impulses to nerves or muscles to evoke a response, often used in medical treatment and research.

Computerised Tomography

A medical imaging technique that uses computer-processed combinations of multiple X-ray measurements taken from different angles to produce cross-sectional images of specific areas of a scanned object, allowing the user to see inside the object without cutting.

Positron Emission Tomography

A nuclear medicine functional imaging technique used to observe metabolic processes in the body as an aid to the diagnosis of disease.