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.

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