Question Details

(Solution) - Atlantic Timber processes timber into Grade A and Grade B

Brief item decscription

Solution download


Item details:

Atlantic Timber processes timber into Grade A and Grade B lumber. Timber costs $200 per unit, where one unit equals 1,000 board feet. The process involves cutting timber into the two grades of lumber. Each unit of timber produces .25 unit (250 board feet) of Grade A lumber with a market value of $240 and .75 unit (750 board feet) of Grade B with a market value of $160. The joint cost of the production process is $100 per unit.
a. Assume that the joint costs of the two grades of lumber are to be allocated on the basis of units of output. What cost is assigned to each product (for .25 unit of Grade A and .75 unit of Grade B)?
b. If the joint costs are allocated on the basis of the net realizable value, what cost is assigned to each product? How much profit or loss does the Grade A lumber earn? Is it really possible to determine which product is more profitable? Explain why or why not.

 







About this question:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Jul 11, 2017

PRICE: $15

Solution~000780029171.zip (18.37 KB)

Buy this answer for only: $15

Pay using PayPal (No PayPal account Required) or your credit card. All your purchases are securely protected by PayPal.
SiteLock

Need a similar solution fast, written anew from scratch? Place your own custom order

We have top-notch tutors who can help you with your essay at a reasonable cost and then you can simply use that essay as a template to build your own arguments. This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student. New solution orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

Order Now