Homework Answers
Solution 1:
| Computation of LCM/NRV Write-down | |||
| Product Line | Quantity on Hand |
Write-down per item (Unit Cost- Value at end) |
Total Write Down (Quantity*write down per item) |
| Air flow | 45 | $0 | $0 |
| Blister Buster | 15 | $2 | $30 |
| Coolonite | 45 | $5 | $225 |
| Dudesly | 10 | $0 | $0 |
| Total | $255 | ||
Solution 2:
Cost of Goods sold will be increased by $255 (by the amount of write down in inventory).
Solution 3:
Written down inventory = Total cost - Total Write down = $3575 - $255 = $3,320
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follows:
AND the Written Inventory:
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