Reference no: EM133167385

Question - Raynor Manufacturing purchases trees from Tree Nursery and processes them up to the split off 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 October. Trees processed: 50 trees (yield is 30,000 sheets of paper and 30,000 pencil casings and no scrap)

Production:

paper 30,000 sheets

pencil casings 30,000

Sales:

paper 29,000 at $0.04 per page

pencil casing 30,000 at $0.10 per casing

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

Raynor Manufacturing's accounting department reported no beginning inventories; however ending inventory amounts reflected 1,000 sheets of paper in stock.

What is the approximate cost assigned to the pencil casings if joint costs are allocated using the sales value at split off method?

What is the paper's production approximate cost per unit if the sales value at split off method is used?

What are the paper's and the pencil's approximate weighted cost proportions using the sales value at split off method, respectively?

What are the paper's and the pencil's approximate weighted cost proportions using the sales value at split off method, respectively?

What are the approximate joint costs assigned to the paper ending inventory if joint costs are allocated using the sales value at split off method?

What is the paper's sales value at the split off point?

What is the approximate production cost per unit for each pencil casing if the sales value at split off method is used?