FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Vinu Bhai 

Cobe Company has manufactured 205 partially finished cabinets at a cost of $51,250. These can be sold as is for $61,500. Instead, the
cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $12,300, and the
finished cabinets could be sold for $82,000.
(a) Prepare a sell as is or process further analysis of Income effects.
(b) Should the cabinets be sold as is or processed further and then sold?
(a) Sell or Process Analysis
Revenue
Costs
Income
Incremental income (loss) to process further
(b) The company should:
Sell As Is Process Further
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Transcribed Image Text:Cobe Company has manufactured 205 partially finished cabinets at a cost of $51,250. These can be sold as is for $61,500. Instead, the cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $12,300, and the finished cabinets could be sold for $82,000. (a) Prepare a sell as is or process further analysis of Income effects. (b) Should the cabinets be sold as is or processed further and then sold? (a) Sell or Process Analysis Revenue Costs Income Incremental income (loss) to process further (b) The company should: Sell As Is Process Further
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