Making a journal entry-joint products}

Louisville Lumber Co. processes rough timber to obtain three grades of finished lumber, A, B, and C. The company allocates costs to the joint products on the basis of market value. During the month of May, Louisville incurred total production costs of \(\$ 300,000\) in producing the following:

Transcribed Image Text:

Grade Thousand Board Feet A 200 B 300 C 500 Selling Price per 1,000 Board Feet $200 100 150 Make the journal entry to transfer the finished lumber to separate inventory accounts for each product.