Question

What are the paper’s and the pencil’s approximate weighted cost proportions using the sales value at split - off method, respectively?

Bismite Corporation the process. The products are then sold t the month of October purchases trees from Cheney lumber and processes them up to the split- off point where two products (paper and pencil casings) emerge from o an independent company that markets and distributes them to retail outlets. The following information was collected for Trees processed Production 270 trees paper pencil casings paper pencil casings 190,000 sheets 190,000 185,000 at $0.20 per page 189,000 at $0.24 per casing Sales The cost of purchasing 270 trees and processing them up to the spit-off point to yield 190,00 shets of paper and 190,000 pencil casings is $14,000 Bismite's accounting department reported no beginning inventory A. B. ° C. OD, 50% and 50% . 45 45% and 54.55% 44 92% and 55 08% 49 47% and 50 53%

Answer 1

Weighted cost proportions - Paper:	38000/(38000+45600)	45.45%
Weighted cost proportions - Pencil:	45600/(38000+45600)	54.55%
Sales value of paper	190000*0.2	38000
Sales value of pencils	190000*0.24	45600

Ans: Option b 45.45% and 54.55%