Y Manufacturing purchases trees from X 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: 100 trees (yield is 70,000 sheets of paper and 70,000 pencil casings

and no scrap)

Joint costs $10,000

Production: paper 70,000 sheets

pencil casings 70,000

Sales: paper 58,000 at $0.04 per page

pencil casings 70,000 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 70,000 pencil casings is $10,000 (joint costs).

Y'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 is the joint cast allocated to paper and pencil casing?

	A.	$2,000 and $7,143
	B.	$7,143 and $2,857
	C.	None of these
	D.	$2,400 and $8,000