Use the Information Below to Answer the Following Question(s)

question 98

Multiple Choice

Use the information below to answer the following question(s) .Raynor Manufacturing purchases trees from Tree Nursery and processes them up to the splitoff 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)
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.
-Two finished products, [A & B], are sold for $16 a unit and $24 a unit, respectively.Each product can also be sold at the splitoff point.Product A can be sold for $10 and Product B for $8.Joint costs for the two products totalled $8,000 for January for 600 units of A and 500 units of B.What are the respective joint costs assigned to each unit of products A and B if the sales value at splitoff method is used?

• A)$5.92 and $8.88
• B)$6.40 and $14.40
• C)$6.40 and $9.10
• D)$8.00 and $9.10
• E)$8.00 and $6.40

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