Cooperstown Sports, Inc. has four products in its inventory. Information on December 31, 2016, about the inventory is follows: Product Total Cost Total Net Realizable Value Gloves $ 3,60,000 $ 3,00,000 Bats $ 2,60,000 $ 3,20,000 Balls $ 1,50,000 $ 1,25,000 Uniforms $ 6,00,000 $ 9,50,000 Required: 1. Determine the inventory book value on December 31, 2016, assuming the lower of cost and net realizable value rule is applied to individual products. 2. Assuming that Cooperstown Sports, Inc. recognizes an inventory write-down as a line item in the income statement, determine the amount of the loss.

Cooperstown Sports, Inc. has four products in its inventory. Information on December 31, 2016, about the inventory is follows: Product Total Cost Total Net Realizable Value Gloves $ 3,60,000 $ 3,00,000 Bats $ 2,60,000 $ 3,20,000 Balls $ 1,50,000 $ 1,25,000 Uniforms $ 6,00,000 $ 9,50,000 Required: 1. Determine the inventory book value on December 31, 2016, assuming the lower of cost and net realizable value rule is applied to individual products. 2. Assuming that Cooperstown Sports, Inc. recognizes an inventory write-down as a line item in the income statement, determine the amount of the loss.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 15E: Habicht Company was formed in 2018 to produce a single product. The production and sales for the...

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