4) If the sales value at splitoff method is used, what are the approximate joint costs assigned to endinginventory for paper?5) If the sales value at splitoff method is used, what is the approximate production cost for each pencilcasing?6) How much is the total cost of goods sold for the period? (for paper and pencil casings combined)7) How much is total gross margin/profit for the period? (for paper and pencil casings combined) Corp purchases trees from Vendor and processes them up to the splitoff point where two products(paper and pencil casings) are obtained and sold separately. The following information was collected forthe month of October:Trees processed: 250 treesProduction:paperpencil casingsSales:paperpencil casings180,000 sheets180,000174,000 at $0.12 per page178,500 at $0.15 per casingThe cost of purchasing 250 trees and processing them up to the splitoff point to yield 180,000 sheets ofpaper and 180,000 pencil casings is $12,500. Corp's accounting department reported no beginninginventory.

Joint cost means the cost incurred to produce more than one units and then joint cost need to be…

Answered: nases trees from Vendc

Business

Accounting

nases trees from Vendc

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 17GI

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Question

4) If the sales value at splitoff method is used, what are the approximate joint costs assigned to ending
inventory for paper?
5) If the sales value at splitoff method is used, what is the approximate production cost for each pencil
casing?
6) How much is the total cost of goods sold for the period? (for paper and pencil casings combined)
7) How much is total gross margin/profit for the period? (for paper and pencil casings combined)

Corp purchases trees from Vendor and processes them up to the splitoff point where two products
(paper and pencil casings) are obtained and sold separately. The following information was collected for
the month of October:
Trees processed: 250 trees
Production:
paper
pencil casings
Sales:
paper
pencil casings
180,000 sheets
180,000
174,000 at $0.12 per page
178,500 at $0.15 per casing
The cost of purchasing 250 trees and processing them up to the splitoff point to yield 180,000 sheets of
paper and 180,000 pencil casings is $12,500. Corp's accounting department reported no beginning
inventory.

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