A Sawmill Bought a Shipment of Logs for $40,000 $\begin{array} { l l l } & \text { Type1 } & \text { Type 2 } \\\end{array}$

Short Answer

A sawmill bought a shipment of logs for $40,000.When cut,the logs produced 1 million board feet of lumber in the following grades:
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.
How much cost should be allocated to Type 1 and Type 2,respectively?
$\begin{array} { l l l } & \text { Type1 } & \text { Type 2 } \\\end{array}$
A. $\begin{array} { l l l } & \$ 16,000 & \$ 16,000 \\\end{array}$
B. $\begin{array} { l l l } & \$ 13,333 & \$ 4,444 \\\end{array}$
C. $\begin{array} { l l l } & \$ 40,000 & \$ 24,000 \\\end{array}$
D. $\begin{array} { l l l } &\$ 24,000 & \$ 12,000 \\\end{array}$
E. $\begin{array} { l l l } &\$24,000&\$ 8,000\end{array}$