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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
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: 320 trees Production: paper 180,000sheets 180,000 pencil casings paper Sales: 169,000at $0.10 per page pencil casings 177,500at $0.13 per casing The cost of purchasing 320 trees and processing them up to the split-off point to yield 180,000 sheets of paper and 180,000 pencil casings is $13,000. Bismite's accounting department reported no beginning inventory. What are the paper's and the pencil's approximate weighted cost proportions using the sales value at split-off method, respectively? OA. 50.00% and 50.00% O B. 48.77% and 51.23% O C. 42.28% and 57.72% O D. 43.48% and 56.52%
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