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Production: Alpha Corporation purchases trees from Beta lumber and processes them up to the splitoff point where two products (paper and pencil casings) are obtained.
Production: Alpha Corporation purchases trees from Beta 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 Trees processed: 250 trees paper 180,000 sheets pencil casings 180,000 paper 174,000 at $0.12 per page pencil casings 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. Alpha's accounting department reported no beginning inventory. What is the total sales value at the splitoff point for paper? Sales: Multiple Choice $20,880 $21600 $27.000 a $26.775
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