Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Answer the following questions. A company has an inventory of 1,050 assorted parts for a line of missiles that has been discontinued. The inventory cost

image text in transcribed

Answer the following questions. A company has an inventory of 1,050 assorted parts for a line of missiles that has been discontinued. The inventory cost is S74,000. The parts can be either (a) remachined at total additional costs of $26,000 and then sold for $32,000 or (b) sold as scrap for $8,500. Which action is more profitable? Show your calculations. A truck, costing S100,000 and uninsured, is wrecked its first day in use. It can be either (a) disposed of for $15,000 cash and replaced with a similar truck costing $103,500 or (b) rebuilt for $85,000 operating characteristics and looks are concemed. Which action is less cosly? Show your calculations 1 2 Ithus be brand-new as far as 1. A company has an inventory of 1,050 assorted parts for a line of missiles that has been discontinued. The inventtory cost is S74,000. The parts can be either (a) remachined at total additional costs of $26,000 and then sold for $32,000 or (b) sold as scrap for $6,500. Which action is more profitable? Show your calculations. (Only complete the necessary answer boxes.) (a) (b) Remachine Scrap Deduct: Operating income is more profitable. Action 2. A truck, costing S100,000 and uninsured, is wrecked its first day in use. It can be either (a) disposed of for S15,000 cash and replaced with a similar truck costing S103,500 or (b) rebuit for $85,000 and thus be brand-new as far as operating characteristics and looks are concemed. Which action is less costly? Show your calculations. (Only complete the necessary answer boxes.) (a) (b) Rebuild Replace Deduct: Toal relevant costs is less costly Action Choose from any list or enter any number in the input fields and then continue to the next quastion

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

Students also viewed these Accounting questions