5 Orange Paper Company processes wood pulp into two products. During April the joit costs of processing were $132,000. Production and sales value information for the month were as follows: 8 Product Paper 0 Cardboard 1 Kilograms Produced 135,000 98,000 Required: Sales Value at splitoff Point $55,000 40,000 Separable Cost $217,000 259,000 Paper sells for $2.65/a kilogram and cardboard sells for $3.40 a kilogram. There were no beginning or ending inventories for April. 1) Determine the amounts to be allocated to each product using the: a) sales value at split-off method
5 Orange Paper Company processes wood pulp into two products. During April the joit costs of processing were $132,000. Production and sales value information for the month were as follows: 8 Product Paper 0 Cardboard 1 Kilograms Produced 135,000 98,000 Required: Sales Value at splitoff Point $55,000 40,000 Separable Cost $217,000 259,000 Paper sells for $2.65/a kilogram and cardboard sells for $3.40 a kilogram. There were no beginning or ending inventories for April. 1) Determine the amounts to be allocated to each product using the: a) sales value at split-off method
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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6
7
4.
3 Orange Paper Company processes wood pulp into two products. During April the join
costs of processing were $132,000. Production and sales value information for the
month were as follows:
6
▪
7
Product
9
Paper
10 Cardboard
11
12 Paper sells for $2.65/a kilogram and cardboard sells for $3.40 a kilogram. There were
13 no beginning or ending inventories for April.
14
Kilograms Produced
135,000
98,000
Required:
Sales Value at
splitoff Point
$55,000
40,000
Separable Cost
$217,000
259,000
3
1) Determine the amounts to be allocated to each product using the:
a) sales value at split-off method"
Transcribed Image Text:15
6
7
4.
3 Orange Paper Company processes wood pulp into two products. During April the join
costs of processing were $132,000. Production and sales value information for the
month were as follows:
6
▪
7
Product
9
Paper
10 Cardboard
11
12 Paper sells for $2.65/a kilogram and cardboard sells for $3.40 a kilogram. There were
13 no beginning or ending inventories for April.
14
Kilograms Produced
135,000
98,000
Required:
Sales Value at
splitoff Point
$55,000
40,000
Separable Cost
$217,000
259,000
3
1) Determine the amounts to be allocated to each product using the:
a) sales value at split-off method
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