Sell or Process Further Great Lakes Boat Company manufactures sailboat hulls at a cost of $4,200 per unit. The hulls are...
Sell or Process Further
Great Lakes Boat Company manufactures sailboat hulls at a cost of
$4,200 per unit. The hulls are sold to boat yards for $5,000. The
company is evaluating the desirability of adding masts, sails, and
rigging to the hulls prior to sale at an additional cost of $1,400.
The completed sailboats could then be sold for $6,000 each.
Determine whether the company should sell sailboat hulls or process
them further into complete sailboats. Assume sales volume will not
be affected.
Calculate the net advantage (disadvantage) of processing the boat
hulls into sail boats. Use a negative sign with your answer, if
appropriate.
$Answer
Homework Answers
Selling price of hulls = $5,000 per unit
Additional processing cost = $1,400
Selling price per unit after further processing = $6,000
Incremental revenue after further processing = Selling price per unit after further processing - Selling price of hulls
= 6,000 - 5,000
= $1,000
Incremental loss after further processing = Incremental revenue after further processing - Additional processing cost
= 1,000 - 1,400
= - $400
Hence, net disadvantage of processing the boat hulls into sail boat = $400
Hence, company should sell sail boat hulls.
kindly give a positive rating if you are satisfied with the solution. Please ask if you have any query related to the question, Thanks.
Add Answer to:
Sell or Process Further Great Lakes Boat Company manufactures sailboat hulls at a cost of $4,200 per unit. The hulls are...
Sell or Process Further Great Lakes Boat Company manufactures sailboat hulls at a cost of $4,200...
Sell or Process Further Great Lakes Boat Company manufactures sailboat hulls at a cost of $4,200 per unit. The hulls are sold to boat yards for $4,800. The company is evaluating the desirability of adding masts, sails, and rigging to the hulls prior to sale at an additional cost of $1,500. The completed sailboats could then be sold for $6,200 each. Determine whether the company should sell sailboat hulls or process them further into complete sailboats. Assume sales volume will...
Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of 5,700 pounds. The...
Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of 5,700 pounds. The standard quantity of materials required in the process is 5,700 pounds, which cost $5.00 per pound. Columbian coffee can be sold without further processing for $7.40 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $11.00 per pound. The processing into Decaf Columbian requires additional processing costs of $11,150 per batch. The additional processing will...
Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of 5,400 pounds. The...
Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of 5,400 pounds. The standard quantity of materials required in the process is 5,400 pounds, which cost $5.00 per pound. Columblan coffee can be sold without further processing for $6.40 per pound. Columblan coffee can also be processed further to yleld Decaf Columblan, which can be sold for $11.00 per pound. The processing Into Decaf Columblan requires additional processing costs of $13,850 per batch. The additional processing will...
Exercise 12-7 Sell or Process Further Decisions (LO12-7) Dorsey Company manufactures three products from a common...
Exercise 12-7 Sell or Process Further Decisions (LO12-7) Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $350,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product A B C Selling Price $ 20.00...
3.6 Sell or Process Further Zing Coffee Company produces Columbian coffee in batches of 5,500 pounds....
3.6
Sell or Process Further Zing Coffee Company produces Columbian coffee in batches of 5,500 pounds. The standard quantity of materials required in the process is 5,500 pounds, which cost $4.00 per pound. Columbian coffee can be sold without further processing for $7.40 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $12.00 per pound. The processing into Decaf Columbian requires additional processing costs of $13,950 per batch. The additional processing...
Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of 5,700 pounds. The standard quantit...
Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of 5,700 pounds. The standard quantity of materials required in the process is 5,700 pounds, which cost $5.00 per pound. Columbian coffee can be sold without further processing for $7.40 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $11.00 per pound. The processing into Decaf Columbian requires additional processing costs of $11,150 per batch. The additional processing will...
Sell or Process Further Port Allen Chemical Company processes raw material D into joint products E...
Sell or Process Further Port Allen Chemical Company processes raw material D into joint products E and F. Raw material D costs $5 per liter. It costs $100 to convert 100 liters of D into 60 liters of E and 40 liters of F. Product F can be sold immediately for $5 per liter or processed further into Product G at an additional cost of $2 per liter. Product G can then be sold for $10 per liter. Determine whether...
Exercise 12-7 Sell or Process Further Decisions (LO12-7] Dorsey Company manufactures three products from a common...
Exercise 12-7 Sell or Process Further Decisions (LO12-7] Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $340,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product A Selling Price $ 18.00 per pound...
Sell or Process Further Rise N' Shine Coffee Company produces Columbian coffee in batches of 5,600...
Sell or Process Further Rise N' Shine Coffee Company produces Columbian coffee in batches of 5,600 pounds. The standard quantity of materials required in the process is 5,600 pounds, which cost $4 per pound. Columbian coffee can be sold without further processing for $8.4 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $10 per pound. The processing into Decaf Columbian requires additional processing costs of $8,550 per batch. The additional...
Sell or Process Further Rise N’ Shine Coffee Company produces Columbian coffee in batches of 5,200...
Sell or Process Further Rise N’ Shine Coffee Company produces Columbian coffee in batches of 5,200 pounds. The standard quantity of materials required in the process is 5,200 pounds, which cost $5 per pound. Columbian coffee can be sold without further processing for $8.4 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $10 per pound. The processing into Decaf Columbian requires additional processing costs of $9,650 per batch. The additional...
Sell or Process Further Great Lakes Boat Company manufactures sailboat hulls at a cost of $4,200 per unit. The hulls are sold to boat yards for $4,800. The company is evaluating the desirability of adding masts, sails, and rigging to the hulls prior to sale at an additional cost of $1,500. The completed sailboats could then be sold for $6,200 each. Determine whether the company should sell sailboat hulls or process them further into complete sailboats. Assume sales volume will...
Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of 5,700 pounds. The standard quantity of materials required in the process is 5,700 pounds, which cost $5.00 per pound. Columbian coffee can be sold without further processing for $7.40 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $11.00 per pound. The processing into Decaf Columbian requires additional processing costs of $11,150 per batch. The additional processing will...
Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of 5,400 pounds. The standard quantity of materials required in the process is 5,400 pounds, which cost $5.00 per pound. Columblan coffee can be sold without further processing for $6.40 per pound. Columblan coffee can also be processed further to yleld Decaf Columblan, which can be sold for $11.00 per pound. The processing Into Decaf Columblan requires additional processing costs of $13,850 per batch. The additional processing will...
Exercise 12-7 Sell or Process Further Decisions (LO12-7) Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $350,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product A B C Selling Price $ 20.00...
3.6
Sell or Process Further Zing Coffee Company produces Columbian coffee in batches of 5,500 pounds. The standard quantity of materials required in the process is 5,500 pounds, which cost $4.00 per pound. Columbian coffee can be sold without further processing for $7.40 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $12.00 per pound. The processing into Decaf Columbian requires additional processing costs of $13,950 per batch. The additional processing...
Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of 5,700 pounds. The standard quantity of materials required in the process is 5,700 pounds, which cost $5.00 per pound. Columbian coffee can be sold without further processing for $7.40 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $11.00 per pound. The processing into Decaf Columbian requires additional processing costs of $11,150 per batch. The additional processing will...
Sell or Process Further Port Allen Chemical Company processes raw material D into joint products E and F. Raw material D costs $5 per liter. It costs $100 to convert 100 liters of D into 60 liters of E and 40 liters of F. Product F can be sold immediately for $5 per liter or processed further into Product G at an additional cost of $2 per liter. Product G can then be sold for $10 per liter. Determine whether...
Exercise 12-7 Sell or Process Further Decisions (LO12-7] Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $340,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product A Selling Price $ 18.00 per pound...
Sell or Process Further Rise N' Shine Coffee Company produces Columbian coffee in batches of 5,600 pounds. The standard quantity of materials required in the process is 5,600 pounds, which cost $4 per pound. Columbian coffee can be sold without further processing for $8.4 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $10 per pound. The processing into Decaf Columbian requires additional processing costs of $8,550 per batch. The additional...
Most questions answered within 3 hours.
-
After watching the lectures I am still having a hard time
understanding these equations.
1. The...
asked 1 hour ago -
Testing:
H0:μ=56.9
H1:μ<56.9
Your sample consists of 23 subjects, with a mean of 56.3 and
standard...
asked 1 hour ago -
straight wire, labeled as Wire A, lies horizontally on a
tabletop and is oriented to run...
asked 1 hour ago -
For a Chi-Squared Goodness of Fit Test about a uniform
distribution, complete the table.
Round to...
asked 1 hour ago -
Milk of magnesia is only slightly soluble in water. Kc for the
reaction Mg(OHs)(s)>Mg2+(a) + 2OH-1(aq)...
asked 1 hour ago -
Excel's HYPGEOM.DIST function can be used to compute _____.
a. both hypergeometric probabilities and cumulative
hypergeometric...
asked 1 hour ago -
The rocket used for the human lunar missions was the Saturn V
rocket. At liftoff the...
asked 1 hour ago -
1. The East Street Bagel Shop has a weekly demand for 3,500
bagels, which they make...
asked 1 hour ago -
paraphrasing each paragraph
“Where two or more persons knowingly act together unlawfully,
the act of each...
asked 1 hour ago -
The lateral line system in fish is contained which of the
following?
chemoreceptors
photoreceptors
mechanoreceptors
odor...
asked 1 hour ago -
Find the y-intercept of y =-5 x. The y-intercept of y equals
negative 5 x is______...
asked 1 hour ago -
Customers arrive randomly at a gas station at the average rate
of 30 per hour, while...
asked 1 hour ago