Auto Components has an inventory of 500 obsolete remote entry keys that are carried in inventory at

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Auto Components has an inventory of 500 obsolete remote entry keys that are carried in inventory at a manufacturing cost of $80,000. Production Supervisor Natasha Buss must decide to do one of the following:
■ Process the inventory further at a cost of $20,000, with the expectation of selling it for $28,000
■ Scrap the inventory for a sale price of $6,000
What should Buss do? Present figures to support your decision.
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Related Book For  book-img-for-question

Managerial Accounting

ISBN: 978-0176223311

1st Canadian Edition

Authors: Karen Wilken Braun, Wendy Tietz, Walter Harrison, Rhonda Pyp

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