Lilitop Corporation purchases trees from Hummer 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 followinginformation was collected for the month of October:Trees processed:270 treesProduction:раper150,000 sheetspencil casings150,000Sales:paper137,000 at $0.10 per pagepencil casings149.000 at $0.14 per casingThe 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. Lilitop's accounting department reported no beginning inventory.What is the total sales value at the split-off point of the pencil casings?O $13,700O $15.000O $20,860O $21,000

Sales value can be determined by multiplying total sales units by sales price per unit.

Lilitop Corporation purchases trees from Hummer 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: Trees processed: 270 trees Production: paper 150,000 sheets pencil casings 150,000 Sales: paper 137,000 at $0.10 per page pencil casings 149,000 at $0.14 per casing 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. Lilitop's accounting department reported no beginning inventory. What is the total sales value at the split-off point of the pencil casings? O 13,700 O $15.000 $20,860 $21,000

Lilitop Corporation purchases trees from Hummer 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: Trees processed: 270 trees Production: paper 150,000 sheets pencil casings 150,000 Sales: paper 137,000 at $0.10 per page pencil casings 149,000 at $0.14 per casing 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. Lilitop's accounting department reported no beginning inventory. What is the total sales value at the split-off point of the pencil casings? O 13,700 O $15.000 $20,860 $21,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 1MAD: Dura-Conduit Corporation manufactures plastic conduit that is used in the cable industry. A conduit...

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