Raynor Manufacturing purchases trees from Tree Nursery and processes them up to the split-offpoint, where two products(paper and pencilcasings) 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.

Production:

paper: 30,000 sheets

pencil casings: 30,000

Sales:

paper: 29,000 at$0.04 per page

pencil casings: 30,000 at$0.10 per casing

The cost of purchasing 50 trees and processing them up to the split-off point to yield30,000 sheets of paper and30,000 pencil casings is$1,500.

RaynorManufacturing's accounting department reported no beginninginventories; however, ending inventory amounts reflected1,000 sheets of paper in stock.

What are the pencilcasings' sales value at the splitoff point?