Blue Paper Company Processes Wood Pulp into Two Products

question 26

Essay

Blue Paper Company processes wood pulp into two products.During January the joint costs of processing were $144,000.Production and sales value information for the month were as follows:

Paper sells for $2.75 a kilogram and cardboard sells for $3.50 a kilogram.
There were no beginning inventories for January but ending inventories totalled 10,000 kilograms for paper and 12,000 kilograms for cardboard.
Required:
Prepare a product line income statement in gross margin format.Joint costs are allocated using the net realizable value method assuming all available product is sold.

---

Definitions:

Behave Cruelly

Refers to actions or attitudes that intentionally cause harm or suffering to others.

De-Escalate Arguments

Strategies or methods used to decrease the intensity of a dispute or conflict, aiming to reduce hostility and prevent the situation from worsening.

Unconditioned Response

A reflexive, unlearned reaction to a stimulus that takes place naturally, without any previous conditioning or learning.

Unconditioned Stimulus

A stimulus that automatically triggers a natural and unlearned response.