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What is the total sales value at the splitoff point of the pencil casings? Bismite Corporation purchases trees from Cheney lumber and processes them up
What is the total sales value at the splitoff point of the pencil casings?
Bismite Corporation purchases trees from Cheney lumber and processes them up to the split-off point where two products (paper and pencil casings) emerge from the process. 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: Trees processed: Production: 320 trees paper pencil casings paper pencil casings 180,000 sheets 180,000 173,000 at $0.10 per page 177,500 at $0.14 per casing Sales: The cost of purchasing 320 trees and processing them up to the split - off point to yield 180,000 sheets of paper and 180,000 pencil casings is $13,000. Bismite's accounting department reported no beginning inventory O A. $18,000 O B. $24,850 OC. $25,200 OD. $17,300Step by Step Solution
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