Tiny Dog Company has 15,000 units of its sparkle dog collar in inventory that had a production cost of $3 per unit. These units cannot be sold through normal channels due to a failure in the collar latching mechanism. These units could be reworked at a total cost of $23,000 and sold for $28,000. Another alternative is to sell the units to a junk dealer for $8,500. The relevant cost for Tiny Dog to consider in making its decision is $45,000 of original product costs. $28,000 for selling the units to the junk dealer. $68,000 for reworking the units. $23,000 for reworking the units.

Tiny Dog Company has 15,000 units of its sparkle dog collar in inventory that had a production cost of $3 per unit. These units cannot be sold through normal channels due to a failure in the collar latching mechanism. These units could be reworked at a total cost of $23,000 and sold for $28,000. Another alternative is to sell the units to a junk dealer for $8,500. The relevant cost for Tiny Dog to consider in making its decision is $45,000 of original product costs. $28,000 for selling the units to the junk dealer. $68,000 for reworking the units. $23,000 for reworking the units.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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