A Lumber Mill Bought a Shipment of Logs for $40,000

Multiple Choice

A lumber mill bought a shipment of logs for $40,000.When cut,the logs produced a million board feet of lumber in the following grades.Compute the cost to be allocated to Type 1 and Type 2 lumber,respectively,if the value basis is used. Type 1-400,000 bd.ft.priced to sell at $0.12 per bd.ft.
Type 2- 400,000 bd.ft.priced to sell at $0.06 per bd.ft.
Type 3- 200,000 bd.ft.priced to sell at $0.04 per bd.ft.

A) $16,000;$16,000.
B) $13,333;$4,444.
C) $40,000;$24,000.
D) $24,000;$12,000.
E) $24,000;$8,000.