Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Answer the following questions. 1. 2. A company has an inventory of 1,250 assorted parts for a line of missiles that has been discontinued.

image text in transcribed

Answer the following questions. 1. 2. A company has an inventory of 1,250 assorted parts for a line of missiles that has been discontinued. The inventory cost is $72,000. The parts can be either (a) remachined at total additional costs of $28,000 and then sold for $33,500 or (b) sold as scrap for $3,500. Which action is more profitable? Show your calculations. A truck, costing $103,500 and uninsured, is wrecked its first day in use. It can be either (a) disposed of for $16,500 cash and replaced with a similar truck costing $102,000 or (b) rebuilt for $84,000, and thus be brand-new as far as operating characteristics and looks are concerned. Which action is less costly? Show your calculations.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Information Systems Today Managing in the Digital World

Authors: Joseph Valacich, Christoph Schneider

6th edition

1292215976, 132971216, 9781292215976, 978-0132971218

More Books

Students also viewed these Accounting questions

Question

Separate average companies from exceptional companies.

Answered: 1 week ago

Question

4. How does an executor account for the properties of an estate?

Answered: 1 week ago