Whisker clean company spent 8000 to produce product

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Financial and Managerial Accounting Using Excel for Success
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Chapter 26 / Exercise PR26–1B
Financial and Managerial Accounting Using Excel for Success
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113.Whisker Clean Company spent $8,000 to produce Product 89, which can be sold “as is”for $10,000, or processed further incurring additional costs of $3,000 and then sold for$14,000. Which amounts are relevant to the decision about Product 89?a.$8,000, $10,000, and $14,000b.$8,000, $3,000, and $14,000c.$10,000, $3,000, and $14,000d.$8,000, $10,000, $3,000, and $14,000
114.Narst Company has old inventory on hand that cost $18,000. Its scrap value is $24,000.The inventory could be sold for $60,000 if manufactured further at an additional cost of$18,000. What should Narst do?
115.Market Makeup produces face cream. Each bottle of face cream costs $15 to produce andcan be sold for $20. The bottles can be sold as is, or processed further into sunscreen ata cost of $21 each. Market Makeup could sell the sunscreen bottles for $35 each.Therefore, the face cream must
116.Walton, Inc. is unsure whether to sell its product assembled or unassembled. The unitcost of the unassembled product is $32, while the cost of assembling each unit isestimated at $34. Unassembled units can be sold for $110, while assembled units couldbe sold for $142 per unit. What decision should Walton make?
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Financial and Managerial Accounting Using Excel for Success
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Chapter 26 / Exercise PR26–1B
Financial and Managerial Accounting Using Excel for Success
Reeve/Warren
Expert Verified
Test Bank for ISV Managerial Accounting, Fourth Edition
117.Which of the following is not involved in the sell or process further decision?a.Revenuesb.Variable costsc.Opportunity costsd.Fixed costs
118.All of the following are relevant to the sell or process further decision except
119.Costs incurred before the split-off point are
120.Which of the following terms are synonymous?
Use the following information for questions 121–123.Paul Bunyon Lumber Co. produces several products that can be sold at the split-off point orprocessed further and then sold. The following results are from a recent period:Sales ValueAdditionalSales Value afterProductat Split-off Variable CostsFurther ProcessingGreen lumber$79,800$12,000$89,000Rough lumber62,00014,10086,800Sawdust51,0009,80065,000

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