Bismite Corporation purchases trees from Cheney lumber and processes them up to the splitoff point...
80.2K
Verified Solution
Link Copied!
Question
Accounting
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: 250 trees Production: paper 500,000 sheets pencil casings 250,000 Sales: paper 400,000 at $0.10 per page pencil casings 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?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
