Bismite Corporation Purchases Trees from Cheney Lumber and Processes Them

question 37

Multiple Choice

Bismite Corporation purchases trees from Cheney lumber and processes them up to the split-off point where two products (paper and pencil casings) emerge. 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:

The cost of purchasing 350 trees and processing them up to the split-off point to yield 150,000 sheets of paper and 150,000 pencil casings is $15,500.
Bismite's accounting department reported no beginning inventory.
If the sales value at split-off method is used, what is the approximate production cost for each paper sheet? (Round intermediary percentages to the nearest hundredth.)

• A) $0.043
• B) $0.065
• C) $0.041
• D) $0.062

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Definitions:

Air Divergence

The movement of air away from a particular region, often associated with descending air and fair weather.

Trough Of Low Pressure

A long, extended region in the atmosphere where the atmospheric pressure is lower than the surrounding area.

Buoyant Forces

The upward force exerted by a fluid that opposes the weight of an object immersed in the fluid, crucial in explaining why objects float or sink.

Force Of Gravity

The attraction between two masses, especially the gravitational pull of the Earth on objects near its surface.