Answer the Following Questions Using the Information Below:
Bismite Corporation

question 113

Multiple Choice

Answer the following questions using the information below:
Bismite Corporation 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 October:
$\begin{array}{lll}\text { Trees processed: } & 250 \text { trees } & \\\text { Production: } & \text { paper } & 180,000 \text { sheets } \\& \text { pencil casings } & 180,000 \\\text { Sales: } & \text { paper } & 174,000 \text { at } \$ 0.12 \text { per page } \\& \text { pencil casings } & 178,500 \text { at } \$ 0.15 \text { per casing }\end{array}$ The cost of purchasing 250 trees and processing them up to the splitoff point to yield 180,000 sheets of paper and 180,000 pencil casings is $12,500.
Bismite's accounting department reported no beginning inventory.
-If the sales value at splitoff method is used,what are the approximate joint costs assigned to ending inventory for paper?

• A) $185.17
• B) $57.87
• C) $175.38
• D) $57.78

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Definitions:

Tangible Costs

Directly measurable expenses associated with a specific action, project, or decision, such as materials, labor, and overhead costs.

Balanced HR Scorecard

A strategic planning and management system used in an organization, particularly in the HR sector, that translates an organization’s mission and vision into operational objectives and performance measures.

Basic Questions

Fundamental inquiries that explore essential or core aspects of a subject or problem.

Activity-based Measures

Metrics designed to assess specific activities rather than general performance.