ACCOUNTING,CHAP.1-13
26th Edition
ISBN: 9781305088412
Author: WARREN
Publisher: CENGAGE L
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Chapter 25, Problem 25.11EX
To determine
Differential Analysis: Differential analysis refers to the analysis of differential revenue that could be gained or differential cost that could be incurred from the available alternative options of business.
To Prepare: The differential analysis of Company PL as on June 14, to decide whether to sell rough cut or process it further to finished cut lumber.
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Sell or Process Further
Bunyon Lumber Company incurs a cost of $398 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $562 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $522 per hbf, which can be sold for $754 per hbf.
Prepare a differential analysis dated August 9 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign.
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Sell Rough-Cut (Alt. 1) or Process Further into Finished Cut (Alt. 2)
August 9
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ProcessFurther intoFinished Cut(Alternative 2)
DifferentialEffecton Income(Alternative 2)
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$
$
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Costs, per 100 board ft.
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$
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Determine whether to sell rough-cut lumber (Alternative 1) or process further into…
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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). 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
Revenues, per 100 board ft.
Costs, per 100 board ft.
Income (Loss), per 100 board ft.
Sell
Rough-Cut
(Alternative 1)
$
Process
Further into
Finished Cut
(Alternative 2)
Differential
Effect
on Income
(Alternative 2)
4
Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2).
Process…
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…
Chapter 25 Solutions
ACCOUNTING,CHAP.1-13
Ch. 25 - Explain the meaning of (a) differential revenue,...Ch. 25 - A company could sell a building for 250,000 or...Ch. 25 - A chemical company has commodity-grade and...Ch. 25 - A company accepts incremental business at a...Ch. 25 - A company fabricates a component at a cost of...Ch. 25 - Prob. 6DQCh. 25 - In the long run, the normal selling price must be...Ch. 25 - Although the cost-plus approach to product pricing...Ch. 25 - How does the target cost concept differ from...Ch. 25 - Prob. 10DQ
Ch. 25 - Under what conditions might a company use...Ch. 25 - Prob. 25.1APECh. 25 - Lease or sell Timberlake Company owns equipment...Ch. 25 - Prob. 25.2APECh. 25 - Discontinue a segment Product B has revenue of...Ch. 25 - Prob. 25.3APECh. 25 - Make or buy A company manufactures various sized...Ch. 25 - Prob. 25.4APECh. 25 - Replace equipment A machine with a book value of...Ch. 25 - Prob. 25.5APECh. 25 - Process or sell Product D is produced for 24 per...Ch. 25 - Prob. 25.6APECh. 25 - Prob. 25.6BPECh. 25 - Product cost markup percentage Magna Lighting Inc....Ch. 25 - Product cost markup percentage Green Thumb Garden...Ch. 25 - Bottleneck profit Product A has a unit...Ch. 25 - Prob. 25.8BPECh. 25 - Activity-based costing Mainline Marine Company has...Ch. 25 - Activity-based costing Casual Cuts Inc. has total...Ch. 25 - Differential analysis for a lease or sell decision...Ch. 25 - Prob. 25.2EXCh. 25 - Differential analysis for a discontinued product A...Ch. 25 - Differential analysis for a discontinued product...Ch. 25 - Segment analysis for a service company Charles...Ch. 25 - Prob. 25.6EXCh. 25 - Make-or -buy decision Jupiter Computer Company has...Ch. 25 - Make-or-buy decision for a service company The...Ch. 25 - Machine replacement decision A company is...Ch. 25 - Differential analysis for machine replacement Kim...Ch. 25 - Prob. 25.11EXCh. 25 - Prob. 25.12EXCh. 25 - Decision on accepting additional business...Ch. 25 - Accepting business at a special price Portable...Ch. 25 - Prob. 25.15EXCh. 25 - Accepting business at a special price for a...Ch. 25 - Product cost concept of product pricing La Femme...Ch. 25 - Product cost concept of product costing Smart...Ch. 25 - Target costing Toyota Motor Corporation uses...Ch. 25 - Target costing Instant Image Inc. manufactures...Ch. 25 - Product decisions under bottlenecked operations...Ch. 25 - Product decisions under bottlenecked operations...Ch. 25 - Activity-based costing CardioTrainer Equipment...Ch. 25 - Activity-based costing Zeus Industries...Ch. 25 - Activity rates and product costs using...Ch. 25 - Total cost concept of product pricing Based on the...Ch. 25 - Variable cost concept of product pricing Based on...Ch. 25 - Differential analysis involving opportunity costs...Ch. 25 - Differential analysis for machine replacement...Ch. 25 - Differential analysis for sales promotion proposal...Ch. 25 - Prob. 25.4APRCh. 25 - Prob. 25.5APRCh. 25 - Prob. 25.6APRCh. 25 - Activity-based costing Pure Cane Sugar Company...Ch. 25 - Prob. 25.1BPRCh. 25 - Differential analysis for machine replacement...Ch. 25 - Differential analysis for sales promotion proposal...Ch. 25 - Differential analysis for further processing The...Ch. 25 - Prob. 25.5BPRCh. 25 - Product pricing and profit analysis with...Ch. 25 - Activity-based costing Southeastern Paper Company...Ch. 25 - Ethics in Action Aaron McKinney is a cost...Ch. 25 - Decision on accepting additional business A...Ch. 25 - Accept business at a special price for a service...Ch. 25 - Communication The following conversation took...Ch. 25 - Identifying product cost distortion Peachtree...
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