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Bismite Corporation Purchases Trees from Cheney Lumber and Processes Them

question 106

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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:
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 150,000 sheets of paper and 150,000 pencil casings is $14,500. Bismite's accounting department reported no beginning inventory. What is the total sales value at the split-off point of the pencil casings? A) $15,000 B) $21,000 C) $20,860 D) $13,700
The cost of purchasing 270 trees and processing them up to the split-off point to yield 150,000 sheets of paper and 150,000 pencil casings is $14,500.
Bismite's accounting department reported no beginning inventory.
What is the total sales value at the split-off point of the pencil casings?


Definitions:

Central Nervous System

The part of the nervous system that includes the brain and spinal cord.

Spinal Cord

The long, thin, tubular bundle of nervous tissue and support cells that extends from the brain down the length of the back, integral for transmitting nerve signals.

Autonomic Nervous System

A division of the peripheral nervous system that controls involuntary functions of the body, such as heart rate, digestion, and respiratory rate.

Cranial Nerves

Twelve pairs of nerves that originate in the brain and serve various sensory and motor functions of the head and neck.

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