Trees

processed:

100 trees (yield is 70,000 sheets of paper and 60,000 pencil casings and no scrap)

Production:

paper 70,000 sheets

pencil casings 60,000

Sales:

paper 68,000 at $0.04 per page

pencil casings 60,000 at $0.10 per casing

The cost of purchasing 100 trees and processing them up to the splitoff point to yield 70,000 sheets of paper and 60,000 pencil casings is $3,000.

Yip's Manufacturing's accounting department reported no beginning inventories and an ending inventory of 2,000 sheets of paper.

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

A.

$762.90

B.

$27.27

C.

$32.19

D.

$28.58

E.

$954.60