Chapter 16 Answer the following questions using the information below: YManufact

Question

Chapter 16 Answer the following questions using the information below: YManufacturing purchases trees from "X" 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 November 100 trees (yield is 60,000 sheets of paper and 60,000 pencil casings and no scrap) $10,000 paper pencil casings paper pencil casings Trees processed Joint costs Production. 60,000 sheets 70,00G 60,000 Sales: 58,000 at $0.04 per page 60,000 at S0.10 per casing he cost of purchasing 100 trees and processing them up to the splitoff point to yield 60,000 Y's accounting department reported no beginning inventories and an ending inventory of 2,000 sheets of paper 25)What is the sales value at the splitoffpoint for paper and the pencil casing? A) $240 and 800 B) $2,320 and 5,380 C) S2,400 and 6,000 D) None of these 2points Show your work 260 If the sales value at splitoff method is used, what is the joint cast allocated to paper and pencil casing. A) $2,857 and $7,143 B) $100.00 and 3,450 C) $870.00 and 2,000 2 points D) None of these Show your work

Explanation / Answer

25C $2,400 and 6,000 Explanation: Paper Pencil Casings Quantity 60000 60000 Sales price x $0.04 x $0.10 Sales Value $        2,400 $               6,000 26A $2,857 and $7,143 Explanation: Sales alue % x joint cost = allocated cost Paper 2400 28.57% x 10000 = $        2,857 Pencil Casings 6000 71.43% x 10000 = $        7,143 8400

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.