Question: 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
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.
- Prepare a sell as is or process further analysis of income effects
- Should the cabinets be sold as is or processed further and then sold?
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