Cost Accounting Time Period by Homework Help Classof1

Cost Accounting Time Period

byHomework Help Classof1

Kobo ebook | March 13, 2013

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"Bunyan Lumber, LLC, harvests timber and delivers logs to timber mils for sale.  The company was founded 70 years ago by Pete Bunyan.  The current CEO is Paula Bunyan, the granddaughter of the founder.  The company is currently evaluating a 7,500 acre forest it owns in Oregon.  Paula has asked Steve Boles, the company’s finance officer, to evaluate the project.  Paula’s concern is when the company should harvest the timber.
Lumber is sold by the company for it “pond value”.  Pond value is the amount a mill will pay for a log delivered to the mill location.  The price paid for logs delivered to a mill is quoted in dollars per thousands of board feel (MBF), and the price depends on the grade of the logs.  The forest Bunyan Lumber is evaluating was planted by the company 20 years ago and is made up entirely of Douglas fir trees.  The table below shows the current price per MBF for the three grades of timber the company feels will come from the stand.

Title:Cost Accounting Time PeriodFormat:Kobo ebookPublished:March 13, 2013Publisher:Classof1Language:English

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