Sell or Process Further. Jackson Lumber Company incurs a cost of $374 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $546 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $529 per hbf, which can be sold for $746 per hbf. Prepare a differential analysis dated August 9 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). Fo 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 Revenues, per 100 board ft. Costs, per 100 board ft. Income (Loss), per 100 board ft. Sell Rough-Cut (Alternative 1) $ Differential Effect on Income Process Further into Finished Cut (Alternative 2) (Alternative 2) Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). Process further and sell finished-cut lumber ✓

Sell or Process Further. Jackson Lumber Company incurs a cost of $374 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $546 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $529 per hbf, which can be sold for $746 per hbf. Prepare a differential analysis dated August 9 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). Fo 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 Revenues, per 100 board ft. Costs, per 100 board ft. Income (Loss), per 100 board ft. Sell Rough-Cut (Alternative 1) $ Differential Effect on Income Process Further into Finished Cut (Alternative 2) (Alternative 2) Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). Process further and sell finished-cut lumber ✓

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Sell or Process Further Calgary Lumber Company incurs a cost of $388 per hundred board feet (hbf) in processing certain “rough-cut” lumber, which it sells for $550 per hbf. An alternative is to produce a “finished cut” at a total processing cost of $520 per hbf, which can be sold for $748 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 Rough-Cut(Alternative 1) Process Furtherinto Finished-Cut(Alternative 2) DifferentialEffect on Income(Alternative 2) Revenues, per unit $fill in the blank f0f0a4fd6062f85_1 $fill in the blank f0f0a4fd6062f85_2 $fill in the blank f0f0a4fd6062f85_3 Costs, per unit fill in the blank f0f0a4fd6062f85_4 fill in the blank f0f0a4fd6062f85_5 fill in the blank f0f0a4fd6062f85_6 Income (Loss), per unit $fill in…
sasa
None
Sell or Process Further Port Allen Chemical Company processes raw material D into joint products E and F. Raw material D costs $6 per liter. It costs $100 to convert 100 liters of D into 60 liters of E and 40 liters of F. Product F can be sold immediately for $6 per liter or processed further into Product G at an additional cost of $4 per liter. Product G can then be sold for $14 per liter. Determine whether Product F should be sold or processed further into Product G. • Calculate the net advantage (disadvantage) of further processing • Use a negative sign with your answer to indicate a net disadvantage (if applicable). $0 per liter
D1.
Make or Buy A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $156 per unit (100 bottles), including fixed costs of $35 per unit. A proposal is offered to purchase small bottles from an outside source for $104 per unit, plus $8 per unit for freight. a. Prepare a differential analysis dated January 25 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles, assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". Differential Analysis Make Bottles (Alt. 1) or Buy Bottles (Alt. 2) January 25 MakeBottles(Alternative 1) BuyBottles(Alternative 2) DifferentialEffect(Alternative 2) Unit costs: Purchase price $fill in the blank 54430b055ff4071_1 $fill in the blank 54430b055ff4071_2 $fill in the blank 54430b055ff4071_3 Freight fill in the blank 54430b055ff4071_4 fill in the blank 54430b055ff4071_5 fill in the blank…
The selling price of a component is 1.45 Riyal with a material cost of 0.8 Riyal. The cost of the machine used to manufacture the component is15000 Riyals. The present production volume is 22000 units. Determine the breakeven quantity, if the cost of the component is 1.5 Riyal from outside supplier. Due to modification in the component design, the material cost is reduced to 0.70 riyal with additional machine cost of 4000 Riyals and increased production quantity to 30000. Guide the manger to select appropriate product for maximum profit based on profit, break-even analysis and justify the selection
Process or Sell Product A is produced for $3.38 per pound. Product A can be sold without additional processing for $4.21 per pound or processed further into Product B at an additional cost of $0.35 per pound. Product B can be sold for $4.36 per pound Prepare a differential analysis dated November 15 on whether to sell A (Alternative 1) or process further into B (Alternative 2). If required, round your answers to the nearest whole dollar. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Sell Product A (Alt. 1) or Process Further into Product B (Alt. 2) November 15 Process Further into Product B(Alternative 2) Differential Effect Sell Product A (Alternative 1) on Income (Alternative 2) $1 Revenues, per unit Costs, per unit Income (Loss), per unit Should Product A be sold (Alternative 1) or processed further into Product B (Alternative 2)? Sell Product A Process further into Product B
Assume a merchandising company provides the following information from its master budget for the month of May: Sales $ 121,000 $ 97,000 Cost of goods sold Selling and administrative expenses $ 31,000 Accounts receivable, May 1st $ 17,000 Accounts receivable, May 31st $ 24,500 If all of the company's sales are on account, what is the amount of cash collections from customers included in the cash budget for May?
Product F is produced for $3.42 per pound. Product F can be sold without additional processing for $4.07 per pound or processed further into Product G at an additional cost of $0.43 per pound. Product G can be sold for $4.42 per pound. Prepare a differential analysis dated November 15 on whether to Sell Product F (Alternative 1) or Process Further into Product G (Alternative 2). If required, round your answer to the nearest cent. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential AnalysisSell Product F (Alt. 1) or Process Further into Product G (Alt. 2)November 15 SellProduct F(Alternative 1) ProcessFurther intoProduct G(Alternative 2) DifferentialEffect(Alternative 2) Revenues, per unit $fill in the blank 15afe8f7b050fa7_1 $fill in the blank 15afe8f7b050fa7_2 $fill in the blank 15afe8f7b050fa7_3 Costs, per unit fill in the blank 15afe8f7b050fa7_4 fill in the blank 15afe8f7b050fa7_5 fill in the blank 15afe8f7b050fa7_6…
Sell or Process Further Bunyon Lumber Company incurs a cost of $390 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $52 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $524 per hbf, which can be sold for $742 per hbf. Prepare a differential analysis dated August 9 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (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 Differential Sell Further into Effect Rough-Cut on Income (Alternative 2) (Alternative 2) Finished Cut (Alternative 1) Revenues, per 100 board ft. Costs, per 100 board ft. Income (Loss), per 100 board ft. Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). Sell rough-cut…
Process or Sell Product A is produced for $3.54 per pound. Product A can be sold without additional processing for $4.14 per pound or processed further into Product B at an additional cost of $0.45 per pound. Product B can be sold for $4.58 per pound. Prepare a differential analysis dated November 15 on whether to sell A (Alternative 1) or process further into B (Alternative 2). If required, round your answers to the nearest whole dollar. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Sell Product A (Alt. 1) or Process Further into Product B (Alt. 2) November 15 Sell Product A(Alternative 1) Process Furtherinto Product B (Alternative 2) Differential Effect on Income (Alternative 2) Revenues, per unit $fill in the blank 694e3df9c00701f_1 $fill in the blank 694e3df9c00701f_2 $fill in the blank 694e3df9c00701f_3 Costs, per unit fill in the blank 694e3df9c00701f_4 fill in the blank 694e3df9c00701f_5 fill…