Sell as is | process further | difference | |
---|---|---|---|
Revenues | 6000 | 33,000 | 27,000 |
Cost | 0 | 20,000 | 20,000 |
Benefit (Loss) | 6000 | 13,000 | 7,000 |
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Car Components has an inventory of 510 obsolete remote entry keys that are carried in inventory...
Truck Components has an inventory of 500 obsolete remote entry keys that are carried in inventory at a manufacturing cost of $78,500 Production supervisor Andy Johns must decide to do one of the following: • Process the inventory further at a cost of $10,000, with the expectation of sing it for $35.000 Scrap the inventory for a sales price of $3,000 What should Johns do? Present figures to support your decision Prepare the Sellor Process Further analysis (Enter a "o"...
Vehicle Accessories has an inventory of 490 obsolete remote entry keys that are carried in inventory at a manufacturing cost of $77 420 Production supervisor Lee Lewis must decide to do one of the following: • Process the inventory further at a cost of $21,000, with the expectation of selling it for $33,000 - Scrap the inventory for a sales price of $5,500 What should Lewis do? Present fures to support your decision Prepare the Selor Process Further analysis (Enter...
Coronado Inc. has 10200 obsolete calculators, which are carried in inventory at a cost of $21400. If the calculators are scrapped, they can be sold for $1.40 each (for parts). If they are repackaged, at a cost of $16000, they could be sold to toy stores for $2.60 per unit. What alternative should be chosen, and why?Scrap; profit is $3760 greater.Repackage; revenue is $5400 greater than cost.Scrap; incremental loss is $7120.Repackage; receive profit of $10520.
Varto Company has 9,000 units of its sole product in inventory that it produced last year at a cost of $26 each. This year's model is superior to last year's and the 9,000 units cannot be sold at last year's regular selling price of $52 each. Varto has two alternatives for these items: (1) they can be sold to a wholesaler for $14 each, or (2) they can be processed further at a cost of $186,000 and then sold for...
1) 1) Goods in transit are automatically included in inventory regardless of whether title has passed to the buyer. A) True B) False 2) 2) An advantage of FIFO is that it assigns the most recent costs to cost of goods sold, and does a better job of matching current costs with revenues on the income statement. A) True B) False 3) 3) Errors in the period-end inventory balance only affect the current period's records and financial statements. A) True...
Activity-Based Costing, Distorted Product Costs Sharp Paper Inc. has three paper mills, one of which is located in Memphis, Tennessee. The Memphis mill produces 300 different types of coated and uncoated specialty printing papers. Management was convinced that the value of the large variety of products more than offset the extra costs of the increased complexity. During 20X1, the Memphis mill produced 120,000 tons of coated paper and 80,000 tons of uncoated paper. Of the 200,000 tons produced, 180,000 were...
Your Assignment · You are an outside consulting organization who has been retained by the CEO to fix the problems and make sure the mandate is driven throughout the organization. identify what strategic initiatives and changes you will recommend and the tactics to implement those strategies and changes based on this case study New Product Development Process Improvement Case Study Background: Horizon Giftables, Inc. is a 35-year-old consumer products company that manufactures and distributes home accessory products and décor items through...