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

question 149

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

• A)$750
• B)$765
• C)$1,005
• D)$1,071
• E)$1,500

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Definitions:

Individuation

Carl Jung’s term for the process of psychological development.

Intuitive

Refers to the ability to understand or know something without any direct evidence or reasoning process.

Sensing

A cognitive process that involves perceiving or taking in information through the senses.

Thinking

The process of using one's mind to consider or reason about something, involving cognition, problem-solving, and decision-making.