Green Leaf Company had the following information available on December 31: Item #Units Cost Total cost Market value Total market value Wheelbarrows 100 $ 32.10 $ 3,210 $ 33.00 $ 3,300 Shovels 320 14.00 4,480 12.00 3,840 Gloves 80 8.60 688 9.40 752 Hoses 140 11.00 1,540 10.50 1,470 $ 9,918 $ 9,362 Management applies the LCM rule on the basis of inventory category and includes wheelbarrows and hoses in the large implement category and shovels and gloves in the small implement category. What is the write-down required?
Green Leaf Company had the following information available on December 31: Item #Units Cost Total cost Market value Total market value Wheelbarrows 100 $ 32.10 $ 3,210 $ 33.00 $ 3,300 Shovels 320 14.00 4,480 12.00 3,840 Gloves 80 8.60 688 9.40 752 Hoses 140 11.00 1,540 10.50 1,470 $ 9,918 $ 9,362 Management applies the LCM rule on the basis of inventory category and includes wheelbarrows and hoses in the large implement category and shovels and gloves in the small implement category. What is the write-down required?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Green Leaf Company had the following information available on December 31:
| Item | #Units | Cost | Total cost | Market value | Total market value | ||||||||||
| Wheelbarrows | 100 | $ | 32.10 | $ | 3,210 | $ | 33.00 | $ | 3,300 | ||||||
| Shovels | 320 | 14.00 | 4,480 | 12.00 | 3,840 | ||||||||||
| Gloves | 80 | 8.60 | 688 | 9.40 | 752 | ||||||||||
| Hoses | 140 | 11.00 | 1,540 | 10.50 | 1,470 | ||||||||||
| $ | 9,918 | $ | 9,362 | ||||||||||||
Management applies the LCM rule on the basis of inventory category and includes wheelbarrows and hoses in the large implement category and shovels and gloves in the small implement category. What is the write-down required?
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