A lumber mill paid $70,000 for logs that produced 200,000 board feet of lumber in 3 different grades and amounts as follows: Compute the portion of the $70,000 joint cost to be allocated to No. 2 Common if the value basis is used.
A) $0.
B) $17,500.
C) $23,333.
D) $35,000.
E) $70,000.

Question

A lumber mill paid $70,000 for logs that produced 200,000 board feet of lumber in 3 different grades and amounts as follows:  Compute the portion of the $70,000 joint cost to be allocated to No. 2 Common if the value basis is used.
A) $0. 
B) $17,500. 
C) $23,333. 
D) $35,000. 
E) $70,000.

Quizplus · Accepted Answer

The Answer of A lumber mill paid $70,000 for logs that produced 200,000 board feet of lumber in 3 different grades and amounts as follows:  Compute the portion of the $70,000 joint cost to be allocated to No. 2 Common if the value basis is used.
A) $0. 
B) $17,500. 
C) $23,333. 
D) $35,000. 
E) $70,000.

A Lumber Mill Paid $70,000 for Logs That Produced 200,000