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: 310 trees Production: paper 180,000 sheets pencil casings 180,000 Sales: paper 170,000 at $0.20 per page pencil casings 177,500 at $0.24 per casing The cost of purchasing 310 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 is the total sales value at the split-off point for paper? What is the total sales value at the split-off point of the pencil casings? What are the paper's and the pencil's approximate weighted cost proportions using the sales value at split-off method, respectively? 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) 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: 310 trees
Production: paper 180,000 sheets
pencil casings 180,000
Sales: paper 170,000 at $0.20 per page
pencil casings 177,500 at $0.24 per casing
The cost of purchasing 310 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 is the total sales value at the split-off point for paper?
What is the total sales value at the split-off point of the pencil casings?
What are the paper's and the pencil's approximate weighted cost proportions using the sales value at split-off method, respectively?
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.)
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