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Exercise 233 (Algo) Sell or process LO P2 Cobe Company has manufactured 230 partially finished cabinets at a cost of $57,500. These can be sold as is for $69,000. Instead the cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $13,800, and the finished cabinets could be sold for $92,000. (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? Exercise 23-4 (Algo) Scrap or rework LO P2 A company must decide between scrapping or reworking units that do not pass inspection. The company has 19,000 defective units that have already cost $132,000 to manufacture. The units can be sold as scrap for $62,700 or reworked for $93,100 and then sold for $171,000 (a) Prepare a scrap or rework analysis of income effects. (b) Should the company sell the units as scrap or rework them? Varto Company has 9,000 units of its product in inventory that it produced last year at a cost of $159,000. This year's model is better than last year's, and the 9,000 units cannot be sold at last year's normal selling price of $46 each. Varto has two alternatives for these units: (1) They can be sold as is to a wholesaler for $126,000 or (2) they can be processed further at an additional cost of $161,000 and then sold for $279,000 (a) Prepare a sell as is or process further analysis of income effects. (b) Should Varto sell the products as is or process further and then sell them