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6. Sell or process further Sell or Process Further Calgary Lumber...

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Accounting

6. Sell or process further
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Sell or Process Further Calgary Lumber Company incurs a cost of $376 per hundred board feet (hbf) in processing certain rough-cut lumber, which it sells for $560 per hbt. An alternative is to produce a "finished-cut" at a total processing cost of $527 per hbt, which can be sold for $774 per hbf. a. Prepare a differential analysis dated March 15 on whether to sell rough-cut tumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). Differential Analysis Sell Rough-Cut (Alt. 1) or Process Further into Finished-Cut (Alt. 2) March 15 Sell Process Further Differential Rough Cut into Finished-Cut Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues, per 100 board ft. Costs, per 100 board ft. BE 5 Profit (Loss), per 100 board ft. b. Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2) Sell rough-cut lumber Process further and sell finished cut lumber

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