LauraMo Corporation purchases trees from a lumberyard and processes them up to the split-off point...
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Accounting
LauraMo Corporation purchases trees from a lumberyard 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 June 2021:
Trees processed: 316 trees
Production: paper 197,225 sheets
pencil casings 197,225
Sales: paper 168,650 at $0.1 per page
pencil casings 172,290 at $0.16 per casing
The cost of purchasing 316 trees and processing them up to the split-off point to yield 197,225 sheets of paper and 197,225 pencil casings is $14,735. The sale values per page and per casing are also the sale values at split-off. LauraMo's accounting department reported no beginning inventory.
If the sales value at split-off method is used, what are the approximate joint costs assigned to ending inventory for paper? (Round the final answer to the nearest cent, i.e., to two decimal places.)
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