CengageNOWv2, 2 terms Printed Access Card for Warren?s Financial & Managerial Accounting, 13th, 13th Edition
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Chapter 24, Problem 24.11EX
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 Big Fork Lumber Company incurs a cost of $402 per hundred board feet (hbf) in processing certain “rough-cut” lumber, which it sells for $540 per hbf. An alternative is to produce a “finished cut” at a total processing cost of $523 per hbf, which can be sold for $668 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. $fill in the blank c1acfff9703403c_1 $fill in the blank c1acfff9703403c_2 $fill in the blank c1acfff9703403c_3 Costs, per 100 board ft. fill in the blank c1acfff9703403c_4 fill in…
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…
Sell or Process Further Timberland Lumber Company incurs a cost of $398 per hundred board feet (hbf) in processing certain “rough-cut” lumber, which it sells for $532 per hbf. An alternative is to produce a “finished cut” at a total processing cost of $515 per hbf, which can be sold for $656 per hbf.   Prepare a differential analysis dated August 9 on whether to Sell Rough Cut (Alternative 1) or Process Further into Finished Cut (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           Effects   (Alternative 2) Revenues, per 100 board ft.  $ $ $ Costs, per 100 board ft.       Profit (loss), per 100 board ft. $ $ $ Determine whether to sell rough-cut lumber (Alternative 1) or process further into…

Chapter 24 Solutions

CengageNOWv2, 2 terms Printed Access Card for Warren?s Financial & Managerial Accounting, 13th, 13th Edition

Ch. 24 - Lease or sell Claxon Company owns a machine with a...Ch. 24 - Prob. 24.1BPECh. 24 - Discontinue a segment Product TS-20 has revenue of...Ch. 24 - Prob. 24.2BPECh. 24 - Make or buy A restaurant bakes its own bread for a...Ch. 24 - Make or buy A company manufactures various sized...Ch. 24 - Replace equipment A machine with a book value of...Ch. 24 - Replace equipment A machine with a book value of...Ch. 24 - Process or sell Product T is produced for 5.90 per...Ch. 24 - Process or sell Product D is produced for 24 per...Ch. 24 - Prob. 24.6APECh. 24 - Accept business at special price Product A is...Ch. 24 - Prob. 24.7APECh. 24 - Product cost markup percentage Green Thumb Garden...Ch. 24 - Bottleneck profit Product A has a unit...Ch. 24 - Prob. 24.8BPECh. 24 - Prob. 24.1EXCh. 24 - Prob. 24.2EXCh. 24 - Prob. 24.3EXCh. 24 - Differential analysis for a discontinued product...Ch. 24 - Prob. 24.5EXCh. 24 - Prob. 24.6EXCh. 24 - Prob. 24.7EXCh. 24 - Make-or-buy decision for a service company The...Ch. 24 - Machine replacement decision A company is...Ch. 24 - Differential analysis for machine replacement Kim...Ch. 24 - Prob. 24.11EXCh. 24 - Sell or process further Rise N Shine Coffee...Ch. 24 - Decision on accepting additional business...Ch. 24 - Accepting business at a special price Portable...Ch. 24 - Decision on accepting additional business...Ch. 24 - Service yield pricing and differential analysis...Ch. 24 - Product cost method of product pricing La Femme...Ch. 24 - Product cost method of product costing Smart...Ch. 24 - Target costing Toyota Motor Corporation uses...Ch. 24 - Target costing Instant Image Inc. manufactures...Ch. 24 - Prob. 24.21EXCh. 24 - Product decisions under bottlenecked operations...Ch. 24 - Appendix Total cost method of product pricing...Ch. 24 - Appendix Variable cost method of product pricing...Ch. 24 - Prob. 24.1APRCh. 24 - Differential analysis for machine replacement...Ch. 24 - Prob. 24.3APRCh. 24 - Differential analysis for further processing The...Ch. 24 - Prob. 24.5APRCh. 24 - Product pricing and profit analysis with...Ch. 24 - Differential analysis involving opportunity costs...Ch. 24 - Differential analysis for machine replacement...Ch. 24 - Differential analysis for sales promotion proposal...Ch. 24 - Differential analysis for further processing The...Ch. 24 - Prob. 24.5BPRCh. 24 - Prob. 24.6BPRCh. 24 - Ethics in Action Aaron McKinney is a cost...Ch. 24 - Prob. 24.2CPCh. 24 - Prob. 24.3CPCh. 24 - Prob. 24.4CP
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Incremental Analysis - Sell or Process Further; Author: Melissa Shirah;https://www.youtube.com/watch?v=7D6QnBt5KPk;License: Standard Youtube License