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Prescott Lumber processes logs into grade A and grade Blumber. Logs cost $17.400 per load. The milling process produces 5.000 units of grade A with
Prescott Lumber processes logs into grade A and grade Blumber. Logs cost $17.400 per load. The milling process produces 5.000 units of grade A with a market value of $90,000, and 20,000 units of grade with a market value of $14,000. The cost of the milling process is $21,000 per load Required: a. If the costs of the logs and the miling process are allocated on the basis of units of output, whatcast will be assigned to each product? (Do not round Intermediate calculations.) Cost Allocation GA Greda B b. If the costs of the logs and the milling process are allocated on the basis of the net resizable value, what cost wil be assigned to each product? (Do not round intermediate calculations.) Cost Allocation Grade Grade B e-1. How much profit or loss does the grade Blumber provide using the data in this problem and your analysis in requirement (el? (Do not round intermediate calculatione.) of the companies. ** c-2. Is it really possible to determine which product is more profitable? Yes O No
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