Solved

Use the Information Below to Answer the Following Question(s)

Question 91

Multiple Choice

Use the information below to answer the following question(s) :
Orange Paper Company processes wood pulp into two products.During February the joint costs of processing were $156,000.Production and sales value information for the month were as follows:
Use the information below to answer the following question(s) : Orange Paper Company processes wood pulp into two products.During February the joint costs of processing were $156,000.Production and sales value information for the month were as follows:    Paper sells for $2.85 a kilogram and cardboard sells for $3.90 a kilogram.There were no beginning inventories for April but ending inventories totalled 15,000 kilograms for paper and 18,000 kilograms for cardboard. -What will be the total incremental benefit or (loss) from all potential sales of processing the paper beyond the splitoff point? A) $251,000 B) $281,000 C) $513,000 D) $311,000 E) $232,000 Paper sells for $2.85 a kilogram and cardboard sells for $3.90 a kilogram.There were no beginning inventories for April but ending inventories totalled 15,000 kilograms for paper and 18,000 kilograms for cardboard.
-What will be the total incremental benefit or (loss) from all potential sales of processing the paper beyond the splitoff point?


A) $251,000
B) $281,000
C) $513,000
D) $311,000
E) $232,000

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions