THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 1 THROUGH 4:

Yakima Manufacturing purchases trees from Cascade 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 November:

Trees processed:50 trees (yield is 30,000 sheets of paper and 30,000 pencil casings and no scrap)

Production:paper30,000 sheets

pencil casings30,000

Sales:paper29,000 at $0.04 per page

pencil casings30,000 at $0.10 per casing

The cost of purchasing 50 trees and processing them up to the splitoff point to yield 30,000 sheets of paper and 30,000 pencil casings is $1,500.

Yakima's accounting department reported no beginning inventories and an ending inventory of 1,000 sheets of paper.

1.What is the sales value at the splitoff point for paper?

a.$120

b.$1,160

c.$1,200

d.$1,950

2.What is the sales value at the splitoff point of the pencil casings?

a.$300

b.$1,480

c.$3,000

d.$3,750

3.If the sales value at splitoff method is used, what are the approximate joint costs assigned to ending inventory for paper?

a.$14.29

b.$50.00

c.$435.00

d.$750.00

4.If the sales value at splitoff method is used, what is the approximate production cost for each pencil casing?

a.$0.0250

b.$0.0255

c.$0.0335

d.$0.0357

Sorry I know this is a lot.