ntBismite Corporation purchases trees from Cheney lumber and processes them up to the split – off point where two products (paper and pencil casings) emerge fromthe process. The products are then sold to an independent company that markets and distributes them to retail outlets. The following information was collected for themonth of October:Trees processed:340 treesProduction:рaper150,000 sheetspencil casings150,000Sales:раper140,000 at $0.20 per pagepencil casings 147,500 at $0.24 per casingThe cost of purchasing 340 trees and processing them up to the split - off point to yield 150,000 sheets of paper and 150,000 pencil casings is $14,500.Bismite's accounting department reported no beginning inventory.If the sales value at split - off method is used, what is the approximate production cost for each pencil casing? (Round intermediary percentages to the nearesthundredth.)

Under the sales value at split-off point method of allocating the joint costs, the sales price is…

Answered: Bismite Corporation purchases trees…

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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