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Qayqayt Paper Products Inc. processes wood pulp into two products. During January the joint costs of processing were $144,000. Production and sales value information for the month were as follows:
Sales Value atProduct Kilograms Produced Split off Point Separable CostsPaper 130,000 $80,000 $224,000Basic Cardboard 108,000 70,000 264,000
Paper sells for $2.75 a kilogram and cardboard sells for $3.50 a kilogram. There were no beginning inventories for April but ending inventories totalled 10,000 kilograms for paper and 12,000 kilograms for cardboard.
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