Answer the Following Questions Using the Information Below:
Bismite Corporation

question 35

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 is the approximate production cost for each paper sheet?

• A) $0.309
• B) $0.301
• C) $0.031
• D) $0.039

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Definitions:

Alveolar Sac

A tiny sac located at the very end of the respiratory tree in the lungs where gas exchange occurs.

Bronchiole

Small airways in the lungs that branch from the bronchi and lead to the alveolar sacs, facilitating the exchange of oxygen and carbon dioxide.

Respiratory System

The bodily system consisting of organs and structures used for breathing, including the lungs, bronchi, trachea, and diaphragm.

Left Lung

The lung located on the left side of the thorax, slightly smaller than the right lung to accommodate the heart.