q 22

Lanigan Lumber Inc. purchases logs from independent timber contractors 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 April Logs processed 50 logs (yield is 30,000 sheets of paper and 30,000 pencil casings and no scrap) Production: paper pencil casings 30,000 sheets 30,000 Sales paper 29,000 at $1.26 per page