Carson Wood Products processes logs into four grades of lumber totaling 500,000 board feet as follows...

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Carson Wood Products processes logs into four grades of lumber totaling 500,000 board feet as follows...

Carson Wood Products processes logs into four grades of lumber totaling 500,000 board feet as follows at a joint cost of $300,000:

Grade	Board Feet	Final Sales Value
First and second	75,000	$ 56,250
No. 1 common	200,000	180,000
No. 2 common	100,000	105,000
No. 3 common	125,000	127,500

What amount of joint costs will be allocated to No. 2 common using the constant gross margin percentage method?

a.$192,000

b.$67,200

c.$37,800

d.$300,000

business accounting

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Answer 1

Answer #1

Gross margin ratio = Gross margin / revenue

Revenue = 56250+180000+105000+127500= 468,750

Gross margin = 468,750-300,000 = 168,750

Gross margin ratio = 168,750/468,750 = 36%

Joint costs allocated to no 2 = 105,00 * 36% = 37,800

Option C is the answer

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Answer 2

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Suppose that a sawmill processes logs into four grades of lumber totaling 500,000 board feet as...

Suppose that a sawmill processes logs into four grades of lumber totaling 500,000 board feet as...

A lumber mill paid $90,000 for logs that produced 173,400 board feet of lumber in 3...

Carson Wood Products processes logs into four grades of lumber totaling 500,000 board feet as follows...

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Add Answer to: Carson Wood Products processes logs into four grades of lumber totaling 500,000 board feet as follows...

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Earn Coins

Suppose that a sawmill processes logs into four grades of lumber totaling 500,000 board feet as...

Suppose that a sawmill processes logs into four grades of lumber totaling 500,000 board feet as...

A lumber mill paid $90,000 for logs that produced 173,400 board feet of lumber in 3...

Add Answer to:
Carson Wood Products processes logs into four grades of lumber totaling 500,000 board feet as follows...