BCD Company has 7,000 obsolete toys carried in inventory at a manufacturing cost of Phó per unit. If the toys are reworked for Ph 2 per unit, it could be sold for Ph 3 per unit. If the toys are scrapped, it could be sold for Ph 1.85 per unit. Which alternative is more desirable(rework or scrap) and what is the total peso amount of the advantage of that alternative? scrap, Ph 5,950 O rework, Ph 36,050 scrap, Ph 47,950 O rework, Ph 8,050

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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BCD Company has 7,000 obsolete toys carried in inventory at a
manufacturing cost of Phó per unit. If the toys are reworked for Ph 2 per
unit, it could be sold for Ph 3 per unit. If the toys are scrapped, it could be
sold for Ph 1.85 per unit. Which alternative is more desirable(rework or
scrap) and what is the total peso amount of the advantage of that
alternative?
scrap, Ph 5,950
rework, Ph 36,050
scrap, Ph 47,950
O rework, Ph 8,050
Transcribed Image Text:BCD Company has 7,000 obsolete toys carried in inventory at a manufacturing cost of Phó per unit. If the toys are reworked for Ph 2 per unit, it could be sold for Ph 3 per unit. If the toys are scrapped, it could be sold for Ph 1.85 per unit. Which alternative is more desirable(rework or scrap) and what is the total peso amount of the advantage of that alternative? scrap, Ph 5,950 rework, Ph 36,050 scrap, Ph 47,950 O rework, Ph 8,050
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