Use the information below to answer the following question$($s$)$:

Yip Manufacturing purchases trees from Cheney Lumber and processes them up to the splitoff 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 May:$$

Trees processed:$100$ trees $($yield is $70,000$ sheets of paper and $60,000$ pencil casings and no scrap$)$

Production:paper$70,000$ sheets

pencil casings$60,000$

Sales:paper$68,000$ at $$0\mathrm{.}04$ per page

pencil casings$60,000$ at $$0\mathrm{.}10$ per casing$$

The cost of purchasing $100$ trees and processing them up to the splitoff point to yield $70,000$ sheets of paper and $60,000$ pencil casings is $$3,000.$

Yip's Manufacturing's accounting department reported no beginning inventories and an ending inventory of $2,000$ sheets of paper.$$

If the sales value at splitoff method is used, what is the approximate production cost for each pencil casing?

Question $5$Answer

a$.$

$$0\mathrm{.}0419$

b$.$

$$0\mathrm{.}05$

c$.$

$$0\mathrm{.}0299$

d$.$

$$0\mathrm{.}0341$

e$.$

$$0\mathrm{.}0398$

question $2$ Use the information below to answer the following question$($s$).$

Cranbrook Chemical Ltd$.$ manufactures two industrial compounds. In the month of May, $15,000$ litres of direct material costing $$160,000$ were processed at a cost of $$400,000.$ The joint process yielded $16,000$ containers of a compound known as Jarlon and $4,000$ containers of a compound known as Kharton. The respective selling prices of Jarlon and Kharton are $$38$ and $$58.$ Both products may be processed further. Jarlon may be processed into Jaxton at an incremental cost of $$8$ per jar of the final product while Kharton may be processed into Kraxton at an additional cost of $$32$ per jar of the final product. The volume of jars of the final product are: $12,000$ and $3,000$ for Jaxton and Kraxton respectively. The selling price of Jaxton is $$48$ per jar. The selling price of Kraxton is $$102$ per jar.

Using the sales value at splitoff method, the joint costs allocated to Jarlon would be

Question $2$Answer

a$.$

$$289,520.$

b$.$

$$154,672.$

c$.$

$$115,808.$

d$.$

$$405,328.$

e$.$

$$110,480.$