Sell or Process Further Calgary Lumber Company incurs a cost of $384 per hundred board feet (hbf) in processing certain "rough- cut" lumber, which it sells for $542 per hbf. An alternative is to produce a "finished-cut" at a total processing cost of $524 per hbf, which can be sold for $744 per hbf. a. Prepare a differential analysis dated March 15 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2) Differential Analysis Sell Rough-Cut (Alt. 1) or Process Further into Finished-Cut (Alt. 2) March 15 Sell Process Further Differential Rough-Cut into Finished-Cut Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues, per 100 board ft. Costs, per 100 board ft. Profit (Loss), per 100 board ft. $ b. Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2).

Sell or Process Further Calgary Lumber Company incurs a cost of $384 per hundred board feet (hbf) in processing certain "rough- cut" lumber, which it sells for $542 per hbf. An alternative is to produce a "finished-cut" at a total processing cost of $524 per hbf, which can be sold for $744 per hbf. a. Prepare a differential analysis dated March 15 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2) Differential Analysis Sell Rough-Cut (Alt. 1) or Process Further into Finished-Cut (Alt. 2) March 15 Sell Process Further Differential Rough-Cut into Finished-Cut Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues, per 100 board ft. Costs, per 100 board ft. Profit (Loss), per 100 board ft. $ b. Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2).

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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