Cobe Company nas manufactured 200 partially finished cabinets at a cost of $50,000, These can be sold as is for $60,000. Instead, the cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $12.000, and the Tinished cabinets could be sold for $80,000. (a) Prepare a sell as is or process further analysis of income effects. (b) Should the cabinets be sold as is or processed further and then sold? O Answer is complete but not entirely correct. (a)Sell or Process Analysis Process Further Sell As is Revenue 00,000 Os s0.000 Costs 02000 O 12.000 O Income 10.000 Os 18.000 O Incrementa income (loss) to process further 8,000 (b) The company should Process further

Cobe Company nas manufactured 200 partially finished cabinets at a cost of $50,000, These can be sold as is for $60,000. Instead, the cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $12.000, and the Tinished cabinets could be sold for $80,000. (a) Prepare a sell as is or process further analysis of income effects. (b) Should the cabinets be sold as is or processed further and then sold? O Answer is complete but not entirely correct. (a)Sell or Process Analysis Process Further Sell As is Revenue 00,000 Os s0.000 Costs 02000 O 12.000 O Income 10.000 Os 18.000 O Incrementa income (loss) to process further 8,000 (b) The company should Process further

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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