Paragraph the same production process. Styles Answer: A 17) Which of the following statements is true of the methods for allocating joint costs? A) The net realizable value method uses the sales value of the units sold during the accounting period to allocate joint costs. B) The sales value at split-off method always results in the same gross-margin percentage for all products. C) The sales value at split-off method allocates joint costs to each product in proportion to the sales value of total production. D) The net realizable value method results in the same joint production cost per unit for all products. Answer: I 18) Bismits Corporation purchases trees from Cheney 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 180,000 sheets pencil casings 180,000 Sales: paper 166,000 at $0.20 per page pencil casings 176,000 at $0.23 per casing The cost of purchasing 270 trees and processing them up to the split-off point to yield 180,000 sheets of paper and 180,000 pencil casings is $15,000, Bismits's accounting department reported no beginning inventory. What are the paper's and the pencil's approximate weighted cost proportions using the sales value at split-off method, respectively? A) 50.00% and 50.00% B) 45.06% and 54.94% C) 48.54% and 51.46% D) 46.51% and 53.49%