Sell or Process Further Timberland Lumber Company incurs a cost of $398 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $532 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $515 per hbf, which can be sold for $656 per hbf. Prepare a differential analysis dated August 9 on whether to Sell Rough Cut (Alternative 1) or Process Further into Finished Cut (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Sell Rough Cut (Alt. 1) or Process Further into Finished Cut (Alt. 2) August 9 Process Further into Sell Differential Finished Cut Rough Cut (Alternative 1) Effects (Alternative 2) (Alternative 2) Revenues, per 100 board ft. Costs, per 100 board ft. Profit (loss), per 10o board ft. Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2).

Sell or Process Further Timberland Lumber Company incurs a cost of $398 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $532 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $515 per hbf, which can be sold for $656 per hbf. Prepare a differential analysis dated August 9 on whether to Sell Rough Cut (Alternative 1) or Process Further into Finished Cut (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Sell Rough Cut (Alt. 1) or Process Further into Finished Cut (Alt. 2) August 9 Process Further into Sell Differential Finished Cut Rough Cut (Alternative 1) Effects (Alternative 2) (Alternative 2) Revenues, per 100 board ft. Costs, per 100 board ft. Profit (loss), per 10o board ft. 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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