Paulson Auto Components has an inventory of 490 obsolete remote entry keys that are carried in inventory at a manufacturing cost of $79,870. Production Supervisor Ricky Lewis must decide to do one of the following:
• Process the inventory further at a cost of $19,000, with the expectation of selling it for $31,000
• Scrap the inventory for a sale price of $6,000
What should Lewis do? Present figures to support your decision.