Acct434 Advanced Cost Management: Problem 3 - Oregon Lumber processes timber into four products

Acct434 Advanced Cost Management

Problem 3
Oregon Lumber processes timber into four products. During January, the joint costs of processing were $280,000. There was no inventory at the beginning of the month. Production and sales value information for the month is as follows:

Product Board feet Sales Value at Splitoff Point Ending Inventory

2 x 4's 6,000,000 0.30 per board foot 500,000 bdft.

2 x 6's 3,000,000 0.40 per board foot 250,000 bdft.

4 x 4's 2,000,000 0.45 per board foot 100,000 bdft.

Slabs 1,000,000 0.10 per board foot 50,000 bdft.

Question: Determine the value of ending inventory if the sales value at splitoff method is used for product costing. Round to three decimal places when necessary.
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