Bismite Corporation purchases trees from Cheney lumber and p…
Questions
Bismite Cоrpоrаtiоn purchаses trees from Cheney lumber аnd 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: 310 trees Production: paper 190,000 sheets pencil casings 190,000 Sales: paper 178,000 at $0.10 per page pencil casings 189,000 at $0.14 per casing The cost of purchasing 310 trees and processing them up to the split-off point to yield 190,000 sheets of paper and 190,000 pencil casings is $13,500. Bismite's accounting department reported no beginning inventory. If the sales value at split-off method is used, what are the approximate joint costs assigned to ending inventory for paper? (Round intermediary percentages to the nearest hundredth.)
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