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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
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: 250 trees Trees processed Production: paper pencil casings paper pencil casings 180,000 sheets 180,000 174,000 at $0.12 per page 178,500 at $0.15 per casing Sales 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. Bismite's accounting department reported no beginning inventory. What is the total sales value at the splitoff point for paper? O A. $26,775 OB. $20,880 OC. $21,600 OD. $27,000
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