SELL AS SCRAP, / FURTHER PROCESS INVENTORY,

DECREASE / INCREASE

Mast Truck Accessories has an inventory of 485 obsolete remote entry keys that are carried in inventory at a manufacturing cost of $75,175. Production supervisor Carla Lewis must decide to do one of the following Process the inventory further at a cost of $30,000, with the expectation of selling it for $31,000 Scrap the inventory for a sales price of $4,000 What should Lewis do? Present figures to support your decision Prepare the Sell or Process Further analysis. (Enter a "o" for any zero amounts. Use a minus sign or parentheses when the scrap amount exceeds the process further amount.) Sell As IsProcess Incremental Analysis Sell of Process Further Decision (Scrap) Further Difference Revenues Less: Extra cost of processing further Net benefit (loss) to operating income Lewis should because processing further will operating income by S