Cobe Company has manufactured 200 partially finished cabinets at a cost of $50,000. These can be...

Transcribed Image Text:

Cobe Company has manufactured 200 partially finished cabinets at a cost of $50,000. These can be sold as is for $60,000. Instead the cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $12,000, and the finished cabinets could be sold for $80,000. (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 Cobe Company has manufactured 200 partially finished cabinets at a cost of $50,000. These can be sold as is for $60,000. Instead the cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $12,000, and the finished cabinets could be sold for $80,000. (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