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 paper pencil casings Sales: 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?
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 paper pencil casings Sales: 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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 paper?
5) If the sales value at splitoff method is used, what is the approximate production cost for each pencil
casing?
6) How much is the total cost of goods sold for the period? (for paper and pencil casings combined)
7) How much is total gross margin/profit for the period? (for paper and pencil casings combined)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdb115df1-8865-4d9b-9f0b-29a24e54ce70%2Fe5af12f0-838d-4e7f-9e5e-521d982ac08e%2Fvk3wo8k_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 paper?
5) If the sales value at splitoff method is used, what is the approximate production cost for each pencil
casing?
6) How much is the total cost of goods sold for the period? (for paper and pencil casings combined)
7) How much is total gross margin/profit for the period? (for paper and pencil casings combined)
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education