O https//utpb.instructure.com/courses/5040/quizzes/19041/take Cable One Net-My U
ID: 2594751 • Letter: O
Question
O https//utpb.instructure.com/courses/5040/quizzes/19041/take Cable One Net-My UTPBI Student Activ McGraw-Hill Conne C pps D , Mail, delgado s069 cafr2014 pdf cableonecareer 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 sald 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 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 Sales: The cost of purchasing 250 trees and processing them up to the splitoff point to yield 500,000 sheets of paper and 250000 pencil casings is $20.000. Bismite's accounting department reported no beginning inventory. a) What is the total sales value at the solitof paint 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? el If the sales value at splitoff method is used, shcet? what is the approximate production cost for each paper f) If the sales value at splitoff method is used, what are the approximate joint costs assigned to ending inventory for paper? 25323905-185867..jpg ^ 25 25287343 185867 jpg 0 Type here to searchExplanation / Answer
a. Sales value of paper = 500,000 sheets*$0.10 per page = $50,000
b. Sales value of pencil casings = 250,000*0.20 per casing = $50,000
d. production cost for pencil casings = sales value of pencil casings/(sales value of pencil+paper)*total joint costs
= 50,000/(50,000+50,000)*20,000
= $10,000
Thus production cost for each pencil casing = $10,000/250,000 casings
= $0.040
e. production cost for paper sheet = sales value of paper sheets/(sales value of pencil+paper)*total joint costs
= 50,000/(50,000+50,000)*20,000
= $10,000
Thus production cost for each paper sheet = $10,000/500,000 sheers
= $0.020
f. Ending inventory of paper = 500,000-400,000 = 100,000 sheets
Thus approximate joint costs assigned to ending inventory of paper = $0.020*100,000
= $2,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.