Answer the Following Questions Using the Information Below:
Bismite Corporation

question 125

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.
-What is the total sales value at the splitoff point for paper?

• A) $26,775
• B) $20,880
• C) $21,600
• D) $27,000

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Definitions:

Decomposing Organisms

Organisms, such as bacteria and fungi, that break down dead or decaying organic matter, recycling nutrients back into the ecosystem.

Subatomic Particles

Components of atoms that include protons, neutrons, and electrons, each playing a specific role in atomic structure and behavior.

Pigment

An organic molecule that can absorb light of certain wavelengths. Reflected light imparts a characteristic color.

Electrons

Subatomic particles with a negative charge, found in all atoms and acting as the primary carrier of electricity in solids.