Differential Analysis for Further Processing The management of International Aluminum Co . is considering whether to process
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Differential Analysis for Further Processing
The management of International Aluminum Co is considering whether to process aluminum ingot further into rolled aluminum. Rolled aluminum can be sold for $ per ton, and ingot can be sold without further processing for $ per ton. Ingot is produced in batches of tons by smelting tons of bauxite, which costs $ per ton of bauxite. Rolled aluminum will require additional processing costs of $ per ton of ingot, and tons of ingot will produce ton of rolled aluminum due to trim losses
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Prepare a differential analysis as of February to determine whether to sell aluminum ingot Alternative or process further into rolled aluminum Alternative
Differential Analysis
Sell Ingot Alt or Process Further into Rolled Aluminum Alt
February
Line Item Description Sell Ingot
Alternative Process Further
into Rolled Aluminum
Alternative Differential Effects
Alternative
Revenues, per batch $Revenues, per batch
$Revenues, per batch
$Revenues, per batch
Costs, per batch Costs, per batch
Costs, per batch
Costs, per batch
Profit loss per batch $Profit loss per batch
$Profit loss per batch
$Profit loss per batch
Related Book For
Financial and Managerial Accounting
ISBN: 978-1285078571
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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