Green Leaf Company had the following information available on December 31: Total Item Units Cost cost Market value Total market value Wheelbarro 100 $32.10 $3,210 $ 33.00 $3,300 WS 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 the total inventory. What is the write-down required? a. $864. b. $556. c. $576. d. $710.
Green Leaf Company had the following information available on December 31: Total Item Units Cost cost Market value Total market value Wheelbarro 100 $32.10 $3,210 $ 33.00 $3,300 WS 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 the total inventory. What is the write-down required? a. $864. b. $556. c. $576. d. $710.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter12: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 12.16E: Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that...
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Hi someone tutor can you solve it? subject is account

Transcribed Image Text:Green Leaf Company had the following information available on
December 31:
Total
Item
Units Cost
cost
Market
value
Total market
value
Wheelbarro
100 $32.10 $3,210
$ 33.00
$3,300
WS
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 the total inventory.
What is the write-down required?
a. $864.
b. $556.
c. $576.
d. $710.
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