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How do we get to 8? c) DPS uses an allowance for inventory obsolescence which it calls a reserve. If the provision for inventory obsolescence
How do we get to 8?
c) DPS uses an allowance for inventory obsolescence which it calls a reserve. If the provision for inventory obsolescence was 7 (million) in 2013, what was the value of DPS's inventory that became obsolete (and was written offy in 2013 (3 points)? from filling in the allowance or reserve faccounty 4. Inventories Inventories as of December 31, 2013 and 2012 consisted of the following (in millions): December 31, December 31, 2012 w materals Spare parts 20 Finished goods 131 270 (73) 122 Inventories at Reduction to last in first out cost (34) 200 ventories Inventories are stated at the lower of cost or market value. Cost is primarily determined for inveatories of the Company's subsidiaries by the last-in, first-out ("LIFO") valuation method. The costs of finished goods inventocies include raw materials, direct labor and indirect production and overbead costs. Reserves for excess and obsolete inventories are based on an assessment of slow-moving and obsolete inventories, determined by historical usage and demand. Excess and obsolete inventory reserves were $2 million and $3 million as of December 31, 2013 and 2012, respectively. Refer to Note 4 for additional informationStep by Step Solution
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