Bismite Corporation purchases trees from Cheney 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: 300 trees Production: paper 200,000 sheets pencil casings 200,000 Sales: paper 195,000 at $0.10 per page pencil casings 195,500 at $0.16 per casing The cost of purchasing 300 trees and processing them up to the split-off point to yield 200,000 sheets of paper and 200,000 pencil casings is $12,500. Bismite's accounting department reported no beginning inventory. What is the total sales value at the split-off point of the pencil casings?
Bismite Corporation purchases trees from Cheney 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: 300 trees Production: paper 200,000 sheets pencil casings 200,000 Sales: paper 195,000 at $0.10 per page pencil casings 195,500 at $0.16 per casing The cost of purchasing 300 trees and processing them up to the split-off point to yield 200,000 sheets of paper and 200,000 pencil casings is $12,500. Bismite's accounting department reported no beginning inventory. What is the total sales value at the split-off point of the pencil casings?
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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Bismite Corporation purchases trees from Cheney 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:
300 trees
Production:
paper 200,000 sheets
pencil casings 200,000
Sales:
paper 195,000 at $0.10 per page
pencil casings 195,500 at $0.16 per casing
The cost of purchasing 300 trees and processing them up to the split-off point to yield 200,000 sheets of paper and 200,000 pencil casings is $12,500.
Bismite's accounting department reported no beginning inventory.
What is the total sales value at the split-off point of the pencil casings?
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