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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