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Question
A sawmill paid $70,000 for logs that produced 200,000 board feet of lumber in 3 different grades and amounts as follows:
| Grade | Production | Market Price | ||
| Structural | 25,000 board feet | $1,350/1,000 bd. ft. | ||
| No. 1 Common. | 75,000 board feet | $ 750/1,000 bd. ft. | ||
| No. 2 Common. | 100,000 board feet | $ 300/1,000 bd. ft. | ||
Compute the portion of the $70,000 joint cost to be allocated to No. 2 Common.
A. $ 0.
B. $17,500.
C. $23,333.
D. $35,000.
E. $70,000.
Answer
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Related questions
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Although a fixed budget is only useful over the relevant range of operations, a flexible budget is useful over all possible production levels.
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A fixed budget performance report never provides useful information for evaluating variances.
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A variable or flexible budget is so named because it only focuses on variable costs.
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Use the following information to prepare a budgeted income statement for Arbor Company for the month of June.
a. Beginning cash balance on June 1 is $52,000.
b. Cash receipts from sales: 40% is collected in the month of sale, 50% in the next month, and 10% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are: April (actual), $1,450,000, May (actual), $1,600,000, and June (budgeted), $1,700,000.
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g. Accrued income taxes due in June: $48,000.
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Q:
Use the following information to prepare the June cash budget for Arbor Company. It should show expected cash receipts and cash disbursement for the month and the cash balance expected on June 30.
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