A sawmill bought a shipment of logs for $38,000. When cut, the logs produced 760,000 board feet of lumber in the following grades.
Type 1 - 290,000 bd. ft. priced to sell at $.17 per bd. ft.
Type 2 - 260,000 bd. ft. priced to sell at $.17 per bd. ft.
Type 3 - 210,000 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. (Do not round your intermediate calculations.)
a. $38,000; $44,200.
b. $14,500; $13,000.
c. $10,944;$10,500.
d. $71,400; $71,400.
e. $44,200; $35,700.