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