Armstrong Corporation manufactures bicycle parts. The company currently has a $20,000 Inventory of parts that have...

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Armstrong Corporation manufactures bicycle parts. The company currently has a $20,000 Inventory of parts that have become obsolete due to changes in design specifications. The parts could be sold for $7,500, or modified for $10,500 and sold for $21,300. Exercise 14-35 Part 1 Requlred: 1. Identify the relevance of the data given in the exercise to the decision about what to do with the obsolete parts. Current sales value for unmodified parts Sales value for modified parts Modification costs Current book value of inventory 2-a. Calculate the benefit under each alternative for disposing of the obsolete parts. 2-b. How should the obsolete parts be disposed? Complete this question by entering your answers in the tabs below. Req 2A Req 28 Calculate the benefit under each alternative for disposing of the obsolete parts. Benefit if parts are sold without modification Net benefit if parts are sold after being modified Req 2A Req 28 How should the obsolete parts be disposed? How should the obsolete parts be disposed? Armstrong Corporation manufactures bicycle parts. The company currently has a $20,000 Inventory of parts that have become obsolete due to changes in design specifications. The parts could be sold for $7,500, or modified for $10,500 and sold for $21,300. Exercise 14-35 Part 1 Requlred: 1. Identify the relevance of the data given in the exercise to the decision about what to do with the obsolete parts. Current sales value for unmodified parts Sales value for modified parts Modification costs Current book value of inventory 2-a. Calculate the benefit under each alternative for disposing of the obsolete parts. 2-b. How should the obsolete parts be disposed? Complete this question by entering your answers in the tabs below. Req 2A Req 28 Calculate the benefit under each alternative for disposing of the obsolete parts. Benefit if parts are sold without modification Net benefit if parts are sold after being modified Req 2A Req 28 How should the obsolete parts be disposed? How should the obsolete parts be disposed?

Answer rating: 100% (QA)

A 1 1 2 Current sales value for Unmodified Parts 7500 3 Sales value for Modified part... View the full answer