Green Leaf Company had the following information available on December 31: Item#UnitsCostTotal costMarket valueTotal market valueWheelbarrows 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?

Given, Category 1 Category 2 Wheelbarrows Shovels Hoses Gloves

Answered: Green Leaf Company had the following…

Managerial Accounting: The Cornerstone of Business Decision-Making

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ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

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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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