Bismite Corporation Purchases Trees from Cheney Lumber and Processes Them

question 125

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 310 trees and processing them up to the split-off point to yield 190,000 sheets of paper and 190,000 pencil casings is $13,500.
Bismite's accounting department reported no beginning inventory.
If the sales value at split-off method is used,what are the approximate joint costs assigned to ending inventory for paper? (Round intermediary percentages to the nearest hundredth. )

• A)$355.29
• B)$29.61
• C)$497.34
• D)$379.24

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Definitions:

Smooth Muscle

Type of muscle found in the walls of internal organs such as the stomach, intestines, and blood vessels, functioning involuntarily.

Arteries

Blood vessels that carry oxygen-rich blood away from the heart to various parts of the body.

Superior Mesenteric Vein

A large vein that drains blood from the small intestine, cecum, and part of the colon and pancreas into the hepatic portal vein.

Splenic Vein

A vein that drains blood from the spleen, pancreas, and portions of the stomach, emptying into the portal vein.