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Hello students, here is a question.
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Varto company has 12 ,200 units of a product in inventory that is produced last year at a cost of 158 ,000.
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This year model is better than last year and 12 ,200 units cannot be sold at last year.
00:16
Normal selling price will be 48 each.
00:18
So, varto has two alternatives of these units.
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The first is they can be sold as wholesaler for 158 ,600 or the second they can be processed future in addition cost of 214 ,700 then sold 366 ,000.
00:35
Prepare a sell, ease or process further analysis of income effect.
00:40
The second is should varto sells the product as it is or process future and then sells them.
00:47
And next is a process analysis revenue cost income, sells as it the process further incremental income.
00:56
The company should sell as it is.
00:58
So, these are the options we have.
00:59
Let us discuss the answer for this.
01:01
So, sell is a process future analysis of income effect...