Reference no: EM132976631
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 casings: 30,000 at? $0.10 per casing
The cost of purchasing 50 trees and processing them up to the splitoff 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 are the? paper's and the? pencil's approximate weighted cost proportions using the sales value at split-off? method, respectively?
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