Bismite Corporation Purchases Trees from Cheney Lumber and Processes Them

question 89

Multiple Choice

Bismite Corporation purchases trees from Cheney lumber and processes them up to the split-off point where two products (paper and pencil casings) emerge from the process.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:

The cost of purchasing 270 trees and processing them up to the split-off point to yield 180,000 sheets of paper and 180,000 pencil casings is $15,000.
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
Split-off method,respectively?

• A)50.00% and 50.00%
• B)45.06% and 54.94%
• C)48.54% and 51.46%
• D)46.51% and 53.49%

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Definitions:

Breasts

Glandular organs located on the chest of human females and other mammals that produce milk to feed young offspring.

Pubic Hair

A type of body hair that grows in the genital area of adolescent and adult humans.

Facial

Pertaining to the face, or a beauty treatment for the face intended to cleanse, improve, and enhance the skin.

Chest Hair

Terminal hair that grows on the chest of human adults, more commonly in males after puberty.