Answer the Following Questions Using the Information Below:
Bismite Corporation

question 12

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 are the paper's and the pencil's approximate weighted cost proportions using the sales value at splitoff method,respectively?

• A) 50.00% and 50.00%
• B) 33.33% and 66.67%
• C) 31.82% and 68.18%
• D) 44.44% and 55.56%

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Definitions:

Quantity

The amount or number of a material or immaterial thing.

Quality

Quality refers to the standard of something as measured against other things of a similar kind, or the degree of excellence of something.

Rocks Break

The physical process of rocks fracturing or cleaving under stress, leading to their breakage.

Windows

A graphical operating system environment developed by Microsoft, or openings in the walls of buildings covered with glass.