# Question: A sawmill bought a shipment of logs for 44 000 When

A sawmill bought a shipment of logs for $44,000. When cut, the logs produced a million board feet of lumber in the following grades:

Type 1 - 340,000 bd. ft. priced to sell at $.12 per bd. ft.

Type 2 - 320,000 bd. ft. priced to sell at $.06 per bd. ft.

Type 3 - 340,000 bd. ft. priced to sell at $.04 per bd. ft.

How much cost should be allocated to Type 1 and Type 2, respectively?

Type 1 Type 2

(A) $40,800 $40,800

(B) $40,800 $19,200

(C) $44,000 $13,600

(D) $24,391 $11,478

(E) $24,391 $8,130

A Above.

B Above.

E Above.

C Above.

D Above.

Type 1 - 340,000 bd. ft. priced to sell at $.12 per bd. ft.

Type 2 - 320,000 bd. ft. priced to sell at $.06 per bd. ft.

Type 3 - 340,000 bd. ft. priced to sell at $.04 per bd. ft.

How much cost should be allocated to Type 1 and Type 2, respectively?

Type 1 Type 2

(A) $40,800 $40,800

(B) $40,800 $19,200

(C) $44,000 $13,600

(D) $24,391 $11,478

(E) $24,391 $8,130

A Above.

B Above.

E Above.

C Above.

D Above.

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