A Sawmill Processes Logs into Four Grades of Lumber Totaling

question 83

Multiple Choice

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

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