Question & Answer: Vehicle Accessories has an inventory of 480 obsolete remote entry keys that are carried in inventory at a manufacturing cost of $74…..

Vehicle Accessories has an inventory of 480 obsolete remote entry keys that are carried in inventory at a manufacturing cost of $74,880. Production supervisor Leo James must decide to do one of the following: Process the inventory further at a cost of $32,000, with the expectation of selling it for $35,000 Scrap the inventory for a sales price of $5,500 What should James do? Present figures to support your decision. Prepare the Sell or Process Further analysis. (Enter a “0” for any zero amounts. Use a minus sign or parentheses when the scrap amount exceeds the process further amount.) James should because processing further will operating income by $