Carson Wood Products Processes Logs into Four Grades of Lumber

question 122

Multiple Choice

Carson Wood Products processes logs into four grades of lumber totaling 500,000 board feet as follows at a joint cost of $300,000: What amount of joint costs will be allocated to No. 2 common using the constant gross margin percentage method?

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

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