Suppose That a Sawmill Processes Logs into Four Grades of Lumber

question 25

Multiple Choice

Suppose that a sawmill 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 first and second using the physical units method?

• A) $300,000
• B) $45,000
• C) $36,000
• D) $225,000

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