Sell or Process Further Bunyon Lumber Company incurs a cost of $386 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 $528 per hbf, which can be sold for $770 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 SellRough-Cut(Alternative 1) ProcessFurther intoFinished Cut(Alternative 2) DifferentialEffecton Income(Alternative 2) 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 or Process Further Bunyon Lumber Company incurs a cost of $386 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 $528 per hbf, which can be sold for $770 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 SellRough-Cut(Alternative 1) ProcessFurther intoFinished Cut(Alternative 2) DifferentialEffecton Income(Alternative 2) 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).
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 11E: Sell or process further Calgary Lumber Company incurs a cost of 315 per hundred board feet (hbf) in...
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Sell or Process Further
Bunyon Lumber Company incurs a cost of $386 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
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 | |||
Sell Rough-Cut (Alternative 1) |
Process Further into Finished Cut (Alternative 2) |
Differential Effect on Income (Alternative 2) |
|
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).
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