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

11eaadfd_cca5_2ebe_95d8_bf3a00c21381_TB6948_00 No. 2-25% × $70,000 = $17,500

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