Question
A lumber mill bought a shipment of logs for $34,000. When cut, the logs produced 850,000 board feet of lumber in the following grades. Type
A lumber mill bought a shipment of logs for $34,000. When cut, the logs produced 850,000 board feet of lumber in the following grades. |
Type 1 - 350,000 bd. ft. priced to sell at $.17 per bd. ft. |
Type 2 - 320,000 bd. ft. priced to sell at $.17 per bd. ft. |
Type 3 - 180,000 bd. ft. priced to sell at $.17 per bd. ft. |
Compute the cost to be allocated to Type 1 and Type 2 lumber, respectively, if the value basis is used |
A. $61,200; $61,200.
B. $54,400; $30,600
C. $14,000; $12,800.
D. $7,644;$7,200
E. $34,000; $54,400
Accurate Metal Company sold 41,000 units of its product at a price of $430 per unit. Total variable cost per unit is $227, consisting of $199 in variable production cost and $8 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing A. $17,630,000 B. $9,307,000 C. $8,979,000 D. $9,471,000 E. $9,143,000
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