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Bismite Corporation purchases trees from Cheney lumber and processes them up to the split -...

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Accounting

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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) 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 October Trees processed: 300 trees Production: paper 200,000 sheets pencil casings 200,000 Sales: paper 190,000 at $0.10 per page pencil casings 196,500 at $0.15 per casing The cost of purchasing 300 trees and processing them up to the split - off point to yield 200,000 sheets of paper and 200,000 pencil casings is $15,000. Bismite's accounting department reported no beginning inventory. What is the total sales value at the split - off point for paper? A. $19,000 B. $29,475 C. $30,000 D. $20,000

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