Lilitop Corporation purchases trees from Hummer 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: 270 trees Production: paper 150,000 sheets pencil casings 150,000 Sales: paper 137,000 at $0.10 per page pencil casings 149,000 at $0.14 per casing The cost of purchasing 270 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. Lilitop's accounting department reported no beginning inventory. What is the total sales value at the split-off point of the pencil casings? O 13,700 O $15.000 $20,860 $21,000
Lilitop Corporation purchases trees from Hummer 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: 270 trees Production: paper 150,000 sheets pencil casings 150,000 Sales: paper 137,000 at $0.10 per page pencil casings 149,000 at $0.14 per casing The cost of purchasing 270 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. Lilitop's accounting department reported no beginning inventory. What is the total sales value at the split-off point of the pencil casings? O 13,700 O $15.000 $20,860 $21,000
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 1MAD: Dura-Conduit Corporation manufactures plastic conduit that is used in the cable industry. A conduit...
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