Carson Wood Products Processes Logs into Four Grades of Lumber

question 102

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 is the gross profit of No. 3 common if the constant gross margin percentage method is used?

• A) $135,000
• B) $81,600
• C) $45,900
• D) $168,750

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Definitions:

Z Scores

A metric that measures the number of standard deviations a data point is from the mean of the dataset.

Percentage

A proportion or share expressed as a fraction of 100, used to denote the relative size or magnitude of a part compared to the whole.

Symmetrical

In statistics, it describes a situation where the data distribution is evenly spread around the mean, having a balanced shape on either side.

Normal Curve

A bell-shaped curve that represents the distribution of many types of data where most values cluster around a mean.