Vaughn Manufacturing has inventory on hand that cost $15800. Its scrap value is $27000. The inventory could be sold for $50000 if manufactured further at an additional cost of $15400. What should Vaughn do?

Dispose of the inventory to avoid any further decline in value

Sell the inventory for $27000 scrap value

Manufacture further and sell it for $50000

Hold the inventory at its $15800 cost

Answer rating: 100% (QA)

Particulars Sale value Process Further ... View the full answer