Physical quantities method with by-product

Reference no: EM131033757

Physical Quantities Method with By-Product

Trans-Pacific Lumber runs a mill in the Northwest that produces two grades of lumber, A and B, and a by-product, sawdust. The company chooses to allocate the costs on the basis of the physical quantities method.

Last month, it processed 125,000 logs at a total cost of $270,000. The output of the process consisted of 25,500 units of grade A, 59,500 units of grade B, and 75,000 units of sawdust. The sawdust can be sold for $10,000. This is considered to be its net realizable value, which is deducted from the processing costs of the main products.

Required

What share of the joint costs should be assigned to grade A and grade B

Reference no: EM131033757

Questions Cloud

What is the minimum demand for the gear : HST is an auto part manufacturer located in Michigan. It launches a new project focusing on the production of a certain type of gear used in auto transmission system. If the demand of the gear is 10,000, should HST make the heat treatment in house o..

Multiple-product financial model : Q1: How does the profit equation change when the analyst uses the multiple-product financial model? Q2: Fixed costs are often defined as "fixed over the short run" Does this means that they are not fixed over the long run? why and why not?

Why employers began to offer such benefits to employees : Was the wage freeze an example of a price floor or a price ceiling? Use the model of demand and supply to explain why employers began to offer such benefits to their employees.

What is perceived as possession of elevated skill sets : Per the analogy: "Because you are good at directing a choir does not mean you have the ability to lead a Broadway show." How many times is this mistake made in assigning tasks or promoting individuals for what is perceived as possession of elevated s..

Physical quantities method with by-product : Trans-Pacific Lumber runs a mill in the Northwest that produces two grades of lumber, A and B, and a by-product, sawdust. The company chooses to allocate the costs on the basis of the physical quantities method.

Explain the divergences between discrete-event simulation : Create a process ?ow based on your observation of one of the following: a. Patients at the student health center on campus. b. Patients at a local ophthalmologist’s o?ce. c. Patients at a local hospital emergency department. Explain the divergences b..

Discussed in the context of leadership-vision and purpose : I would like to examine two points discussed in the context of leadership: vision and purpose. Both can feel at times generalized and lacking of substance. Both terms carry implications organizationally as well as for membership within organizations.

Find a citation per each given thesis prompt : Find a citation per each thesis prompt below that either supports the claim or runs counter to the claim. The citations may be from They Say, I Say, Unnatural Causes: Is Inequality Making Us Sick, or from another source.

Two examples of management functions : Who is a manager and how do managers make decisions for the future based on today’s information? For this discussion activity, you will complete a scavenger hunt by seeking out two examples of people who you consider to be great managers, along with ..

User Account

All Pages