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?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products

Section: Chapter Questions

Problem 12E: Adirondack Bat Co. processes rough timber to obtain three grades of lumber, A, B, and C that are...

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