Yip Manufacturing purchases trees from Cheney Lumber 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 May:
The cost of purchasing 100 trees and processing them up to the splitoff point to yield 70,000 sheets of paper and 60,000 pencil casings is $3,000.
Yip's Manufacturing's accounting department reported no beginning inventories and an ending inventory of 2,000 sheets of paper.
What are the paper's and the pencils' approximate weighted cost proportions using the sales value at splitoff method,respectively?
Definitions:
Competitiveness
The ability of a company, country, or product to compete effectively and successfully in the market.
Purchased Materials
Goods and components bought from external suppliers for use in manufacturing processes or for resale.
Commodity Manager
A professional responsible for procuring raw materials, goods, or services in a specific commodity area, often focusing on strategy, supplier selection, and price negotiation.
Reshoring
The practice of bringing manufacturing and production back to a company's original country from overseas to improve control and reduce costs.
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