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1) Bismite Corporation purchases trees from Cheney lumber and processes them up to the split-off point where two products (paper and pencil casings) are obtained.
1) Bismite Corporation purchases trees from Cheney lumber and processes them up to the split-off 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: The cost of purchasing 280 trees and processing them up to the split-off point to yield 160,000 sheets of paper and 160,000 pencil casings is $13,000. Bismite's accounting department reported no beginning inventory. Compute the total sales value at the split-off point for paper. 2) The Berkel Corporation manufactures Widgets, Gizmos, and Turnbols from a joint process. June production is 9,000 widgets; 12,500 gizmos; and 14,500 turnbols. Respective per unit selling prices at split-off are $100,$60, and $20. Joint costs up to the split-off point are $190,000. If joint costs are allocated based upon the sales value at split-off, compute the amount of joint costs that will be allocated to the widgets. (Do not round any intermediary calculations.) 3) The Green Company processes unprocessed goat milk up to the split-off point where two products, condensed goat milk and skim goat milk result. The following information was collected for the month of October: The costs of purchasing the of unprocessed goat milk and processing it up to the split-off point to yield a total of 103,000 gallons of saleable product was $188,480. There were no inventory balances of either product. Condensed goat milk may be processed further to yield 45,500 gallons (the remainder is shrinkage) of a medicinal milk product, Xyla, for an additional processing cost of $5 per usable gallon. Xyla can be sold for $21 per gallon. Skim goat milk can be processed further to yield 55,700 gallons of skim goat milk ice cream, for an additional processing cost per usable gallon of $5. The product can be sold for $10 per gallon. There are no beginning and ending inventory balances. Compute the estimated net realizable value of Xyla at the split-off point
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