1. Raynor Manufacturing purchases trees from Tree Nursery and processes them up to the split-off point, where two products (paper and pencil casings) are obtained. The products are then sold to an independent company that markets and distributes them to retail outlets. The following information was collected for th month of October. Trees processed: 50 trees (yield is 30,000 sheets of paper and 30,000 pencil casings and no scrap) Production: раper pencil casings 30,000 sheets 30,000 Sales: раper pencil casings Cost of purchasing 50 trees and processing them up to the split-off point to yield 30,000 sheets of paper and 30,000 pencil casings is $1,500. Raynor Manufacturing's accounting department reported no beginning inventories; however, ending inventory amounts reflected 1,000 sheets of paper in stock. What is the paper's sales value at the split-off point? 29,000 at $0.04 per page 30,000 at $0.10 per casing $120 $3,000 $1,200 $1,160 $1,950

1. Raynor Manufacturing purchases trees from Tree Nursery and processes them up to the split-off point, where two products (paper and pencil casings) are obtained. The products are then sold to an independent company that markets and distributes them to retail outlets. The following information was collected for th month of October. Trees processed: 50 trees (yield is 30,000 sheets of paper and 30,000 pencil casings and no scrap) Production: раper pencil casings 30,000 sheets 30,000 Sales: раper pencil casings Cost of purchasing 50 trees and processing them up to the split-off point to yield 30,000 sheets of paper and 30,000 pencil casings is $1,500. Raynor Manufacturing's accounting department reported no beginning inventories; however, ending inventory amounts reflected 1,000 sheets of paper in stock. What is the paper's sales value at the split-off point? 29,000 at $0.04 per page 30,000 at $0.10 per casing $120 $3,000 $1,200 $1,160 $1,950

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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