A manufacturer produces two products: Grimmets and Hokeys. Information on these products along with their raw material inputs and costs incurred to convert the raw materials into finished products are below:

Required:
Evaluate these inventories to determine the amount of write down, if any.

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Inventory item # Units Cost per unit Replacement cost Net realizable value Grimmets $ 30 $20 Raw material A 50 Raw material B 10 100 11 Raw material C 50 40 80 Conversion cost 300 Finished goods $425 450 20 Hokeys Raw materials D 5 600 Raw materials E 1,000 10 11 Conversion costs 120 Finished goods 520 600 16