Bismite Corporation purchases trees from Cheney lumber and processes them up to the splitoff 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 the month of October: Trees processed. Production. Sales. 250 trees paper pencil casings paper pencil casings 500,000 sheets 250,000 400,000 at $0.10 per page 250,000 at $0.20 per casing The cost of purchasing 250 trees and processing them up to the splitoff point to yield 500,000 sheets of paper and 250,000 pencil casings is $20,000. Bismite's accounting department reported no beginning inventory. a) What is the total sales value at the splitoff point for paper? b) What is the total sales value at the splitoff point of the pencil casings? d) If the sales value at splitoff method is used, what is the approximate production cost for each pencil casing? e) If the sales value at splitoff method is used, what is the approximate production cost for each paper sheet? f) If the sales value at splitoff method is used, what are the approximate joint costs assigned to ending inventory for paper?

Bismite Corporation purchases trees from Cheney lumber and processes them up to the splitoff 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 the month of October: Trees processed. Production. Sales. 250 trees paper pencil casings paper pencil casings 500,000 sheets 250,000 400,000 at $0.10 per page 250,000 at $0.20 per casing The cost of purchasing 250 trees and processing them up to the splitoff point to yield 500,000 sheets of paper and 250,000 pencil casings is $20,000. Bismite's accounting department reported no beginning inventory. a) What is the total sales value at the splitoff point for paper? b) What is the total sales value at the splitoff point of the pencil casings? d) If the sales value at splitoff method is used, what is the approximate production cost for each pencil casing? e) If the sales value at splitoff method is used, what is the approximate production cost for each paper sheet? f) If the sales value at splitoff method is used, what are the approximate joint costs assigned to ending inventory for paper?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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nt Bismite Corporation purchases trees from Cheney lumber and processes them up to the split – off point where two products (paper and pencil casings) emerge from the process. The products are then sold to an independent company that markets and distributes them to retail outlets. The following information was collected for the month of October: Trees processed: 340 trees Production: рaper 150,000 sheets pencil casings 150,000 Sales: раper 140,000 at $0.20 per page pencil casings 147,500 at $0.24 per casing The 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 nearest hundredth.)
Bismite Corporation purchases trees from Cheney lumber and processes them up to the split-off point where two products (paper and pencil casings) emerge from the process. The products are then sold to an independent company that markets and distributes them to retail outlets. The following information was collected for the month of October: Trees processed: 300 trees Production: paper 200,000 sheets pencil casings 200,000 Sales: paper 195,000 at $0.10 per page pencil casings 195,500 at $0.16 per casing The cost of purchasing 300 trees and processing them up to the split-off point to yield 200,000 sheets of paper and 200,000 pencil casings is $12,500. Bismite's accounting department reported no beginning inventory. What is the total sales value at the split-off point of the pencil casings?
Bismite Corporation purchases trees from Cheney lumber and processes them up to the split-off point where two products (paper and pencil casings) emerge from the process. The products are then sold to an independent company that markets and distributes them to retail outlets. The following information was collected for the month of October: Trees processed: 320 trees Production: paper 180,000 sheets pencil casings 180,000 Sales: paper 169,000 at $0.10 per page pencil casings 177,500 at $0.13 per casing The cost of purchasing 320 trees and processing them up to the split-off point to yield 180,000 sheets of paper and 180,000 pencil casings is $13,000. Bismite's accounting department reported no beginning inventory. What are the paper's and the pencil's approximate weighted cost proportions using the sales value at split-off method, respectively?
Bismite Corporation purchases trees from Cheney lumber 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 the month of October: Trees processed: 250 trees Production: paper 180,000 sheets pencil casings 180,000 Sales: paper 174,000 at $0.12 per page pencil casings 178,500 at $0.15 per casing The cost of purchasing 250 trees and processing them up to the split-off point to yield 180,000 sheets of paper and 180,000 pencil casings is $12,500. Bismite's accounting department reported no beginning inventory. What are the paper's and the pencil's approximate weighted cost…
Bismite Corporation purchases trees from Cheney lumber 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 the month of October: Trees processed: 280 trees Production: paper 160,000 sheets pencil casings 160,000 Sales: paper 147,000 at $0.10 per page pencil casings 158,500 at $0.13 per casing The cost of purchasing 280 trees and processing them up to the split-off point to yield 160,000 sheets of paper and 160,000 pencil casings is $13,000. Bismite's accounting department reported no beginning inventory. What is the total sales value at the split-off point for paper?
Corp purchases trees from Vendor and processes them up to the splitoff point where two products (paper and pencil casings) are obtained and sold separately. The following information was collected for the month of October: Trees processed: 250 trees Production: paper pencil casings Sales: paper pencil casings 180,000 sheets 180,000 174,000 at $0.12 per page 178,500 at $0.15 per casing The cost of purchasing 250 trees and processing them up to the splitoff point to yield 180,000 sheets of paper and 180,000 pencil casings is $12,500. Corp's accounting department reported no beginning inventory. 1) What is the total sales value at the splitoff point for paper? 2) What is the total sales value at the splitoff point of the pencil casings? 3) What are the paper's and the pencil's approximate weighted cost proportions using the sales value at splitoff method, respectively? 4) If the sales value at splitoff method is used, what are the approximate joint costs assigned to ending inventory for…
Subject: accounting
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 the month of October. Trees processed: 50 trees (vield 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 29,000 at $0.04 per page 30,000 at $0.10 per casing 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? $120 $3,000 $1,200 $1,160 $1,950
Adams Company makes a single product that it sells for $8.45 per unit. Provided below is information about this product for the past nine months: Month January February March April May June July August September Total Cost Incurred $28,730 $24,580 $30,660 $16,890 $19,120 $20,610 $17,490 $25,380 $15,540 Units Sold 6,400 5,150 6,900 2,950 3,600 4,150 3,350 5,500 2,700 Adams Company expects to sell 4,620 units of this product during October. Using the high-low method, calculate Adams Company's expected margin of safety for October.
Beverage Drink Company processes direct materials up to the split - off point where two products, A and B, are obtained. The following information was collected for the month of July: Direct materials processed: 3,000 liters (with 25% shrinkage) Production: A 1,800 liters 450 liters Sales: А $15 per liter B $10 per liter The cost of purchasing 3,000 liters of direct materials and processing it up to the split- off point to yield a total of 2,250 liters of good products was $9,500. There were no inventory balances of A and B. Product A may be processed further to yield 1,700 liters of Product Z5 for an additional processing cost of $190. Product Z5 is sold for $70 per liter. There was no beginning inventory and ending inventory was 125 liters. Product B may be processed further to yield 350 liters of Product W3 for an additional processing cost of $320. Product W3 is sold for $75 per liter. There was no beginning inventory and ending inventory was 25 liters. If Product Z5 and Product W3…
Beverage Drink Company processes direct materials up to the splitoff point where two products, A and B, are obtained. The following information was collected for the month of July: Production: A 1500 liters, B 500 liters. The joint cost was $10000. There were no inventory balances of A and B. Product A may be processed further to yield 1500 liters of Product Z5 for an additional processing cost of $2 per liter. Product Z5 is sold for $20 per liter. There was no beginning inventory and ending inventory was 150 liters. Product B may be processed further to yield 500 liters of Product W3 for an additional processing cost of $4. Product W3 is sold for $30 per liter. There was no beginning inventory and ending inventory was 50 liters. --using constant gross-margin percentage NRV method, gross margin of X: Select one: a. $6500 b. $14600 c. $5400 O d. $18900 + 3 ...
Betty DeRose, Inc. manufactures and sells a single product. Information related to the cost of producing this product for the past six months is provided below: Units Produced 5,360 4,840 7,580 4,930 6,110 7,620 Month June July August September October November Total Cost Incurred $126,017 $118,831 $155,833 $119,246 $136,932 $157, 195 Betty DeRose, Inc. expects to produce 6,495 units of this product during December. Using the high-low method, calculate Betty DeRose, Inc's expected total cost incurred for December.