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

question 99

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 paper's production approximate cost per unit if the sales value at splitoff method is used?

• A)$0.0143
• B)$0.0150
• C)$0.0250
• D)$0.0259
• E)$0.0300

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Definitions:

Monochronic Culture

Culture in which people do only one important activity at a time.

High-Context

A culture or communication style in which most of the information is either in the physical context or internalized in the person, rather than explicitly stated in the message.

Multitasking

The practice of performing multiple tasks or activities simultaneously.

Power-Distance Index

A measure developed by Geert Hofstede that reflects the degree to which less powerful members of a society accept and expect power to be distributed unequally.