Bundle: Managerial Accounting, Loose-leaf Version, 14th - Book Only
14th Edition
ISBN: 9781337541398
Author: Carl Warren; James M. Reeve; Jonathan Duchac
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 10, Problem 5BE
To determine
Prepare the differential analysis to decide whether to sell Product J19 or process it further to Product R33.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Process or Sell
Product J19 is produced for $3.36 per gallon. Product J19 can be sold without additional processing for $4.16 per gallon, or processed further into Product R33 at an additional cost of $0.41 per gallon. Product R33 can be sold for $4.52 per gallon.
a. Prepare a differential analysis dated April 30 on whether to sell Product J19 (Alternative 1) or process further into Product R33 (Alternative 2). Round your answers to the nearest cent. If required, use a minus sign to indicate a loss.
Differential Analysis
Sell Product J19 (Alt. 1) or Process Further into Product R33 (Alt. 2)
April 30
SellProduct J19(Alternative 1)
ProcessFurther intoProduct R33(Alternative 2)
DifferentialEffects(Alternative 2)
Revenues, per unit
Costs, per unit
Profit (loss), per unit
Process or Sell
Product J19 is produced for $3.36 per gallon. Product J19 can be sold without additional processing for $4.12 per gallon, or processed further into Product R33 at an
additional cost of $0.37 per gallon. Product R33 can be sold for $4.44 per gallon.
a. Prepare a differential analysis dated April 30 on whether to sell Product J19 (Alternative 1) or process further into Product R33 (Alternative 2). Round your answers
to the nearest cent. If required, use a minus sign to indicate
loss.
Differential Analysis
Sell Product J19 (Alt. 1) or Process Further into Product R33 (Alt. 2)
April 30
Process
Sell
Differential
Further into
Product J19
Effects
Product R33
(Alternative 1)
(Alternative 2)
(Alternative 2)
Revenues, per unit
$
Costs, per unit
Profit (loss), per unit $
$
b. Should Product J19 be sold (Alternative 1) or processed further into Product R33 (Alternative 2)?
Process or Sell
Product P is produced for $31 per gallon. Product P can be sold without additional processing for $47 per gallon or processed further into Product Q at an additional cost of $7 per gallon. Product Q can be sold for $50 per gallon.
Prepare a differential analysis dated February 26 on whether to Sell Product P (Alternative 1) or Process Further into Product Q (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Differential Analysis
Sell Product P (Alt. 1) or Process Further into Product Q (Alt. 2)
February 26
Process
Sell
Further
Differential
Product P
into Product Q
Effect
(Alternative 1)
(Alternative 2)
(Alternative 2)
Revenues, per unit
$
$
$
Costs, per unit
Profit (loss), per unit
$
$
$
Should Product P be sold (Alternative 1) or processed further into Product Q (Alternative 2)?
Chapter 10 Solutions
Bundle: Managerial Accounting, Loose-leaf Version, 14th - Book Only
Ch. 10 - Explain the meaning of (A) differential revenue,...Ch. 10 - A company could sell a building for 250,000 or...Ch. 10 - A chemical company has a commodity-grade and...Ch. 10 - A company accepts incremental business at a...Ch. 10 - Prob. 5DQCh. 10 - Prob. 6DQCh. 10 - Prob. 7DQCh. 10 - Although the cost-plus approach to product pricing...Ch. 10 - How does the target cost method differ from...Ch. 10 - Prob. 10DQ
Ch. 10 - Prob. 1BECh. 10 - Prob. 2BECh. 10 - Prob. 3BECh. 10 - Replace equipment A machine with a book value of...Ch. 10 - Prob. 5BECh. 10 - Prob. 6BECh. 10 - Prob. 7BECh. 10 - Prob. 8BECh. 10 - Prob. 1ECh. 10 - Prob. 2ECh. 10 - Prob. 3ECh. 10 - Prob. 4ECh. 10 - Prob. 5ECh. 10 - Prob. 6ECh. 10 - Prob. 7ECh. 10 - Prob. 8ECh. 10 - Prob. 9ECh. 10 - Differential analysis for machine replacement Kim...Ch. 10 - Sell or process further Calgary Lumber Company...Ch. 10 - Prob. 12ECh. 10 - Prob. 13ECh. 10 - Prob. 14ECh. 10 - Prob. 15ECh. 10 - Prob. 16ECh. 10 - Product cost method of product costing Smart...Ch. 10 - Target costing Toyota Motor Corporation (TM) uses...Ch. 10 - Prob. 19ECh. 10 - Prob. 20ECh. 10 - Product decisions under bottlenecked operations...Ch. 10 - Total cost method of product pricing Based on the...Ch. 10 - Variable cost method of product pricing Based on...Ch. 10 - Differential analysis involving opportunity costs...Ch. 10 - Differential analysis for machine replacement...Ch. 10 - Differential analysis for sales promotion proposal...Ch. 10 - Prob. 4PACh. 10 - Product pricing using the cost-plus approach...Ch. 10 - Product pricing and profit analysis with...Ch. 10 - Prob. 1PBCh. 10 - Differential analysis for machine replacement...Ch. 10 - Prob. 3PBCh. 10 - Prob. 4PBCh. 10 - Prob. 5PBCh. 10 - Prob. 6PBCh. 10 - Service yield pricing and differential equations...Ch. 10 - Prob. 2ADMCh. 10 - Prob. 3ADMCh. 10 - Aaron McKinney is a cost accountant for Majik...Ch. 10 - Prob. 3TIF
Knowledge Booster
Similar questions
- Process or Sell Product J19 is produced for $3.34 per gallon. Product 119 can be sold without additional processing for $4.21 per gallon, or processed further Into Product R33 at an additional cost of $0.37 per gallon. Product R33 can be sold for $4.32 per gallon. a. Prepare a differential analysis dated April 30 on whether to sell Product J19 (Alternative 1) or process further into Product R33 (Alternative 2). Round your answers to the nearest cent. If required, use a minus sign to indicate a loss. Differential Analysis Sell Product J19 (Alt. 1) or Process Further into Product R33 (Alt. 2) April 30 Process Sel Differential Further into Product R33 (Alternative 2) Product J19 Effects (Alternative 1) (Alternative 2) Revenues, per unit Costs, per unit Profit (loss), per unit b. Should Product J19 be sold (Alternative 1) or processed further into Product R33 (Alternative 2)?arrow_forwardProduct T is produced for $2.50 per gallon. Product T can be sold without additional processing for $3.50 per gallon, or processed further into Product V at an additional total cost of $0.70 per gallon. Product V can be sold for $4.00 per gallon. Prepare a differential analysis dated April 8 on whether to sell Product T (Alternative 1) or process it further into Product V (Alternative 2).arrow_forwardProcess or Sell Product D is produced for $24 per gallon. Product D can be sold without additional processing for $36 per gallon or processed further into Product E at an additional cost of $9 per gallon. Product E can be sold for $43 per gallon. Prepare a differential analysis dated February 26 on whether to sell Product D (Alternative 1) or process further into Product E (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Sell Product D (Alt. 1) or Process Further into Product E (Alt. 2) February 26 Sell Product D(Alternative 1) Process Furtherinto Product E(Alternative 2) Differential Effecton Income(Alternative 2) Revenues, per unit $fill in the blank 8fb5a9f9dfa8050_1 $fill in the blank 8fb5a9f9dfa8050_2 $fill in the blank 8fb5a9f9dfa8050_3 Costs, per unit fill in the blank 8fb5a9f9dfa8050_4 fill in the blank 8fb5a9f9dfa8050_5 fill in the blank 8fb5a9f9dfa8050_6 Income (Loss), per…arrow_forward
- 1. Process or Sell Product A is produced for $3.38 per pound. Product A can be sold without additional processing for $4.02 per pound or processed further into Product B at an additional cost of $0.44 per pound. Product B can be sold for $4.34 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. 2. Accept Business at Special Price Product R is normally sold for $43 per unit. A special price of $32 is offered for the export market. The variable production cost is $24 per unit. An additional export tariff of 15% of revenue must be paid for all export products. Assume that there is sufficient capacity for the special order. Prepare a differential analysis dated March 16, on whether to reject (Alternative 1) or accept (Alternative 2) the special…arrow_forwardProduct P is produced for $31 per gallon. Product P can be sold without additional processing for $47 per gallon or processed further into Product Q at an additional cost of $7 per gallon. Product Q can be sold for $50 per gallon. Prepare a differential analysis dated February 26 on whether to Sell Product P (Alternative 1) or Process Further into Product Q (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Sell Product P (Alt. 1) or Process Further into Product Q (Alt. 2) February 26 SellProduct P(Alternative 1) ProcessFurtherinto Product Q(Alternative 2) DifferentialEffect(Alternative 2) Revenues, per unit $fill in the blank 11f69df4b02d053_1 $fill in the blank 11f69df4b02d053_2 $fill in the blank 11f69df4b02d053_3 Costs, per unit fill in the blank 11f69df4b02d053_4 fill in the blank 11f69df4b02d053_5 fill in the blank 11f69df4b02d053_6 Profit (loss), per unit $fill in the blank…arrow_forwardProduct 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…arrow_forward
- Process or Sell Product A is produced for $3.58 per pound. Product A can be sold without additional processing for $4.1 per pound or processed further into Product B at an additional cost of $0.47 per pound. Product B can be sold for $4.4 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 ProductB (Alternative 2) Differential Effecton Income(Alternative 2) Revenues, per unit $fill in the blank 50d2fef42fcd026_1 $fill in the blank 50d2fef42fcd026_2 $fill in the blank 50d2fef42fcd026_3 Costs, per unit fill in the blank 50d2fef42fcd026_4 fill in the blank 50d2fef42fcd026_5 fill in…arrow_forwardProduct F is producted for $98 per pound. Product F can be sold without additional processing for $139 per pound or processed further into Product G at an additional cost of $13 per pound. Product G can be sold for $158 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).arrow_forwardProduct T is produced for $5.90 per pound. Product T can be sold without additionalprocessing for $7.10 per pound, or processed further into Product U at an additionalcost of $0.74 per pound. Product U can be sold for $8.00 per pound. Prepare and show in solution a differential analysis dated August 2 on whether to sell Product T (Alternative 1) or process further into Product U (Alternative 2).arrow_forward
- 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 Barrow_forwardProduct F is produced for $3.32 per pound. Product F can be sold without additional processing for $4.14 per pound or processed further into Product G at an additional cost of $0.41 per pound. Product G can be sold for $4.54 per pound. Prepare a differential analysis dated November 15 on whether to Sell Product F (Alternative 1) or Process Further into Product G (Alternative 2). If required, round your answer to the nearest cent. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Sell Product F (Alt. 1) or Process Further into Product G (Alt. 2) November 15 Process Further into Sell Differential Product G Product F Effect (Alternative 2) (Alternative 1) (Alternative 2) Revenues, per unit 2$ Costs, per unit Profit (loss), per unit Should Product F be sold (Alternative 1) or processed further into Product G (Alternative 2)?arrow_forwardProduct A is produced for $3.44 per pound. Product A can be sold without additional processing for $4.19 per pound or processed further into Product B at an additional cost of $0.43 per pound. Product B can be sold for $4.46 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 ProductB (Alternative 2) Differential Effecton Income(Alternative 2) Revenues, per unit $fill in the blank 9cf4bef7efd4001_1 $fill in the blank 9cf4bef7efd4001_2 $fill in the blank 9cf4bef7efd4001_3 Costs, per unit fill in the blank 9cf4bef7efd4001_4 fill in the blank 9cf4bef7efd4001_5 fill in the blank…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub