Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

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

the following questions 1. A company has an inventory of 1,250 assorted parts for a line of missiles that has been discontinued. The inventory cost is $74,000. The parts can be either (a) remachined at total additional costs of $24,000 and then sold for $31,500 or (b) sold as scrap for $5,000. Which action is more profitable? Show your calculations. 2. A truck costing $102.000 and uninsured is wrecked on its first day in use. It can be either (a) disposed of for $14,500 cash and replaced with a similar truck costing $106,000 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 Requirement 1. A company has an inventory of 1,250 assorted parts for a line of missiles that has been discontinued. The inventory cost is $74,000. The parts can be either (a) remachined at total additional costs of $24,000 and then sold for $31,500 or (b) sold as scrap for $5,000. Which action is more profitable? Show your calculations. (Only complete the necessary answer boxes.) (a) Remachine (b) Scrap Deduct Operating income Action is more profitable by $ Requirement 2. A truck costing $102,000 and uninsured is wrecked on its first day in use. It can be either (a) disposed of for $14,500 cash and replaced with a similar truck costing $106,000 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. (Only complete the necessary answer boxes) Deduct (a) Replace (b) Rebuild Choose from any list or enter any number in the input fields and then continue to the next question 20 ASUS VivoBook 8 9 1/4 Kemachine Scrap Deduct: Operating income Action is more profitable by $ . Requirement 2. A truck costing $102,000 and uninsured is wrecked on its first day in use. It can be either (a) disposed of for $14,50 operating characteristics and looks are concerned. Which action is less costly? Show your calculations. (Only complete the necessar (b) (a) Replace Rebuild Deduct Total cost Action is less costly by $ Choose from any list or enter any number in the input fields and then continue to the next question. ASUS Viveimage text in transcribedimage text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Managerial Accounting A Focus on Ethical Decision Making

Authors: Steve Jackson, Roby Sawyers, Greg Jenkins

5th edition

978-0324663853

Students also viewed these Accounting questions