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Seattle Manufacturing purchases trees from Cascade Lumber and processes them up to the split off point where two products (paper and pencil casings) are obtained.

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Seattle Manufacturing purchases trees from Cascade Lumber and processes them up to the split off 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 November: Production: 100 trees produced to yield paper 60,000 sheets pencil casings 60.000 Sales: paper 58,000 at $0.08 per page pencil casings 55,000 at $0.20 per casing Cost of purchasing 100 trees and processing them up to the split off point to yield 60,000 sheets of paper and 60,000 pencil casings is $8000. if the physical units method is used to allocate joint costs. How much joint costs are allocated to the paper and pencil casings respectively Select one: 4000 and 4000 b. 3090 and 5000 O 5800 and 2200 O d. 5000 and 3000

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