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    Cornerstones of Cost Management Study Set 1
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    Exam 7: Allocating Costs of Support Departments and Joint Products
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    Suppose That a Sawmill Processes Logs into Four Grades of Lumber
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Suppose That a Sawmill Processes Logs into Four Grades of Lumber

Question 168

Question 168

Multiple Choice

Suppose that a sawmill processes logs into four grades of lumber totaling 500,000 board feet as follows at a joint cost of $300,000: Suppose that a sawmill processes logs into four grades of lumber totaling 500,000 board feet as follows at a joint cost of $300,000:   What amount of joint costs will be allocated to first and second using the physical units method? A)  $300,000 B)  $45,000 C)  $36,000 D)  $225,000 What amount of joint costs will be allocated to first and second using the physical units method?


A) $300,000
B) $45,000
C) $36,000
D) $225,000

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