Suppose That a Plywood Manufacturer Processes Wood Pulp into Four

Multiple Choice

Suppose that a Plywood manufacturer processes wood pulp into four grades of Plywood totaling 500,000 board feet as follows at a joint cost of $450,000: $$\begin{array} { l c c } \text { Grade } & \text { Board Feet } & \text { Final Sales Value } \\\hline \text { First and second } & 75,000 & \$ 56,250 \\\text { No. } 1 \text { common } & 200,000 & 180,000 \\\text { No. } 2 \text { common } & 100,000 & 105,000 \\\text { No. } 3 \text { common } & 125,000 & 127,500\end{array}$$ What amount of joint costs will be allocated to No. 1 common using the final sales value method?

A) $172,800
B) $450,000
C) $80,000
D) $24,000