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Exercise 1 0 - 3 ( Algo ) Sell or process LO P 2 Cobe Company has manufactured 3 0 0 partially finished cabinets at

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Exercise 10-3(Algo) Sell or process LO P2
Cobe Company has manufactured 300 partially finished cabinets at a cost of $75,000. These can be sold as is for $90,000. Instead, the cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $18,000, and the finished cabinets could be sold for $120,000.
(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?
\table[[(a) Sell or Process Analysis,Sell As Is,Process Further],[Revenue,,],[Costs,,],[Income,,],[,,],[Incremental income (loss) to process further,,],[(b) The company should:,,]]
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