Trans-Pacific Lumber runs a mill in the Northwest that produces two grades of lumber, A and B. and a by-product, sawdust

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Trans Pacific Lumber Runs A Mill In The Northwest That Produces Two Grades Of Lumber A And B And A By Product Sawdust 1 (24.36 KiB) Viewed 21 times

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 135.000 logs at a total cost of $360,000. The output of the process consisted of 35.000 units of grade A, 52,000 units of grade B. and 16,000 units of sawdust. The sawdust can be sold for $38,100. 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? (Do not round intermediate calculations.) Product Joint costs Grade A Grade B