Question
100%
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
expand button
Transcribed Image Text: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
Expert Solution

Want to see the full answer?

Check out a sample Q&A here
Blurred answer
Students who’ve seen this question also like:
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Not helpful? See similar books
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Financial Statements And Business Decisions. 1Q
marketing sidebar icon
Want to see this answer and more?
Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*
*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Product F is producted for $98 per pound. Product F can be sold without additional processing for…

A: Contribution  = sales - variable  cost

Q: Product A is produced for $3.58 per pound. Product A can be sold without additional processing for…

A: The question is based on the concept of Cost Accounting.

Q: Product A is produced for $3.44 per pound. Product A can be sold without additional processing for…

A: Under Differential Analysis, a difference of two or more alternatives is considered to make a…

Q: Process or Sell Product A is produced for $3.54 per pound. Product A can be sold without additional…

A: The product can be processed further or not depends on the cost spent and revenue earned.

Q: Process or Sell Product F is produced for $3.34 per pound. Product F can be sold without additional…

A: Here in this question, we are required to make differential analysis. Differential analysis is made…

Q: Product T is produced for $5.90 per pound. Product T can be sold without additional processing for…

A: Cost per pound in alternative 2 = Production cost + further processing cost                    =…

Q: Bunyon Lumber Company incurs a cost of $400 per hundred board feet (hbf) in processing certain…

A: Joint cost: It is the cost of producing two products or services together in a single process.…

Q: Timberland Lumber Company incurs a cost of $398 per hundred board feet (hbf) in processing certain…

A: Sell or process further is the decision-making approach for the intermediate product.

Q: 1. Process or Sell Product A is produced for $3.38 per pound. Product A can be sold without…

A: A decision to go for further processing or sell without additional processing , will be taken on the…

Q: Calgary Lumber Company incurs a cost of $370 per hundred board feet (hbf) in processing certain…

A: Differential analysis:Differential analysis refers to the analysis of differential revenue that…

Q: Calgary Lumber Company incurs a cost of $392 per hundred board feet (hbf) in processing certain…

A: The profits of both the alternative will be compared to make a decision whether to sell rough cut or…

Q: Calgary Lumber Company incurs a cost of $380 per hundred board feet (hbf) in processing certain…

A: a)   Differential analysis Sell Rough cut (Alt 1) or Process further into finished cut…

Q: Calgary Lumber Company incurs a cost of $376 per hundred board feet (hbf) in processing certain…

A: Workings: Rough cut (Alternative 1): Cost = $376 Sell price = $562. Process further in to finished…

Q: ake or Buy company manufactures various-sized plastic bottles for its medicinal product. The…

A: Differential analysis is a technique of evaluating the two alternatives by examining their revenues…

Q: Sell or Process Further Timberland Lumber Company incurs a cost of $398 per hundred board feet (hbf)…

A: In the differential analysis, a difference in more than one alternatives is considered to make a…

Q: The joint costs is P85,000. NUBD currently sells both products at the split-off point. If NUBD makes…

A: Profit (loss) per unit on Product X on further processing = (Selling price after further processing…

Q: Sell or Process Further Bunyon Lumber Company incurs a cost of $386 per hundred board feet (hbf) in…

A: Differential analysis: Differential analysis refers to the analysis of differential revenue that…

Q: Sell or Process Further Jackson Lumber Company incurs a cost of $374 per hundred board feet (hbf)…

A: working notes : 558 -774=216 216-151 =65

Q: Sell or Process Further Jackson Lumber Company incurs a cost of $378 per hundred board feet (hbf) in…

A: Differential Analysis: Differential analysis refers to the analysis of differential revenue that…

Q: Sell or Process Further Big Fork Lumber Company incurs a cost of $402 per hundred board feet (hbf)…

A: Differential analysis is a technique through which an entity can analyse the different alternative…

Q: Tops Company sells Products D and E and has made the following estimates for the coming year:…

A: Breakeven sales point is that level of sales at which business is recovering its total costs that is…

Q: Calgary Lumber Company incurs a cost of $388 per hundred board feet (hbf) in processing certain…

A: If processing further into finished-cut lumber results in income, then the company should process…

Q: Sell or Process Further Bunyon Lumber Company incurs a cost of $398 per hundred board feet (hbf) in…

A: Differential analysis: Differential analysis refers to the analysis of differential revenue that…

Q: Process or Sell Product J19 is produced for $3.36 per gallon. Product J19 can be sold without…

A: The companies, sometimes get different products produced from same raw materials. Companies can…

Q: Product T is produced for $2.50 per gallon. Product T can be sold without additional processing for…

A: Compute the income (loss) from Product T and Product V, and then the compare the income (loss) from…

Q: The joint costs is P85,000. NUBD currently sells both products at the split-off point. If NUBD makes…

A: While making the decision to either sell at the split-off or after further processing, we shall…

Q: algary Lumber Company incurs a cost of $392 per hundred board feet (hbf) in processing certain…

A: The differential analysis is performed to compare the different alternatives available with respect…

Q: Product P is produced for $31 per gallon. Product P can be sold without additional processing for…

A: Where a  product which can be further processed in to another product , in that case , we need to…

Q: Product W can be sold at the split-off point for P5.60 per unit. Product P either can be sold at the…

A: To compute the change in monthly net operating income, the sale value at split off point is to…

Q: Process or Sell Product P is produced for $31 per gallon. Product P can be sold without additional…

A: In the differential analysis, a difference of two or more alternatives is considered to make a…

Q: A company manufactures a subcomponent of an assembly for $80 per unit, including fixed costs of $25…

A: Fixed cost will not change with change in decision that MAKE Or BUY  It wil be same

Q: Product J19 is produced for $3.38 per gallon. Product J19 can be sold without additional processing…

A: Differential analysis means the difference in costs and benefits that may arise from different…

Q: Make or Buy A company manufactures various-sized plastic bottles for its medicinal product. The…

A: Under make or buy decision making, we should choose that alternative which has less cost.

Q: Make or Buy A company manufactures various-sized plastic bottles for its medicinal product. The…

A: Income statement: Under this Statement showing the company’s performance over a period of time by…

Q: Make or Buy A company manufactures various-sized plastic bottles for its medicinal product. The…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

Q: Product J19 is produced for $3.36 per gallon. Product J19 can be sold without additional processing…

A: Profit from both the alternative would be compared.

Q: Breakmoming Corporation produces a product that requires 2.6 pournds of materials per unit. The…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Product A is normally sold for $47 per unit. A special price of $30 is offered for the export…

A: Export tariff, per unit = Sales x 16% = $30 x 16% = $4.8

Q: A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing…

A: Differential analysis is a technique of evaluating the two alternatives by examining their revenues…

Q: Electric spark Co., uses 60,000 of component Zima. The cost of placing an order is estimated at…

A: 1) EOQ = 2AO/c   Given  that, annual demand - 60000 units  cost of placing an order is estimated at…

Q: Product J19 is produced for $3.42 per gallon. Product J19 can be sold without additional processing…

A: Total cost for Alternative 2 = Cost of producing J19 + Additional costs = $3.42 + $0.48 = $3.90 per…

Q: Make or Buy A company manufactures various-sized plastic bottles for its medicinal product. The…

A: Make or Buy:   The make or buy decision refers to the problem encountered by an organization when…

Q: Make or Buy A company manufactures various-sized plastic bottles for its medicinal product. The…

A: A.) Analysis on whether the respected company should make bottles or buy bottles is as follows: Unit…

Q: Alnusairat company is processing Milk with a joint cost of $100000 to produce 2000 units of product…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Baird Electronics currently produces the shipping containers it uses to deliver the electronics…

A: a. Total relevant cost = Material + Labor + overhead + Product level cost =6500+6400+4100+9600*1/3 =…

Q: Replacement Decision. Wisconsin Products Company manufactures several different One of the firm's…

A: Cash flow is defined as the net amount of cash and cash equivalents carried into and out of a…

Q: The annual demand for an item of raw materials is 4,000 units and the purchase price is expected to…

A: Economic order quantity (EOQ) is the ideal quantity amount an organization should buy to limit stock…

Q: Gladstorm Enterprises sells a product for $45 per unit. The variable cost is $33 per unit, while…

A: Gladstorm Enterprises sells a product for $45 per unit. The variable cost is $33 per unit, while…

Q: GEM Ltd leases a photocopy machine with terms that include a fixed fee each month plus a charge for…

A: Cost behavior analysis is used to determine the change in the total cost when the production…

Q: GEM Ltd leases a photocopy machine with terms that include a fixed fee each month plus a charge for…

A: A cost incurred in completing a job or activity may include variable costs, fixed costs and/or mixed…

Knowledge Booster
Recommended textbooks for you
  • FINANCIAL ACCOUNTING
    Accounting
    ISBN:9781259964947
    Author:Libby
    Publisher:MCG
    Accounting
    Accounting
    ISBN:9781337272094
    Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
    Publisher:Cengage Learning,
    Accounting Information Systems
    Accounting
    ISBN:9781337619202
    Author:Hall, James A.
    Publisher:Cengage Learning,
  • Horngren's Cost Accounting: A Managerial Emphasis...
    Accounting
    ISBN:9780134475585
    Author:Srikant M. Datar, Madhav V. Rajan
    Publisher:PEARSON
    Intermediate Accounting
    Accounting
    ISBN:9781259722660
    Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
    Publisher:McGraw-Hill Education
    Financial and Managerial Accounting
    Accounting
    ISBN:9781259726705
    Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
    Publisher:McGraw-Hill Education
  • FINANCIAL ACCOUNTING
    Accounting
    ISBN:9781259964947
    Author:Libby
    Publisher:MCG
    Accounting
    Accounting
    ISBN:9781337272094
    Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
    Publisher:Cengage Learning,
    Accounting Information Systems
    Accounting
    ISBN:9781337619202
    Author:Hall, James A.
    Publisher:Cengage Learning,
    Horngren's Cost Accounting: A Managerial Emphasis...
    Accounting
    ISBN:9780134475585
    Author:Srikant M. Datar, Madhav V. Rajan
    Publisher:PEARSON
    Intermediate Accounting
    Accounting
    ISBN:9781259722660
    Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
    Publisher:McGraw-Hill Education
    Financial and Managerial Accounting
    Accounting
    ISBN:9781259726705
    Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
    Publisher:McGraw-Hill Education