Tatum Company has four products in its inventory. Information about the December 31, 2016, inventory is as follows: Total Net Total Cost Realizable Product Value $120,000 $100,000 101 102 90,000 60,000 30,000 110,000 50,000 50,000 103 104 Required: 1. Determine the book value of inventory at December 31, 2016, assuming the lower of cost and net realizable value rule is applicd to individual products. 2. Assuming that Tatum reports an inventory write-down as a line item in the income statement, determine the amount of the loss.
Tatum Company has four products in its inventory. Information about the December 31, 2016, inventory is as follows: Total Net Total Cost Realizable Product Value $120,000 $100,000 101 102 90,000 60,000 30,000 110,000 50,000 50,000 103 104 Required: 1. Determine the book value of inventory at December 31, 2016, assuming the lower of cost and net realizable value rule is applicd to individual products. 2. Assuming that Tatum reports an inventory write-down as a line item in the income statement, determine the amount of the loss.
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 67P
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