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Konan, Inc. needs to determine its inventory value. The following information pertains to the individual products in ending inventory: Product Cost Replacement Cost Selling Price
Konan, Inc. needs to determine its inventory value. The following information pertains to the individual products in ending inventory:
| Product | Cost | Replacement Cost | Selling Price | Cost of Completion | Normal Profit |
| L-19 | $40 | $38 | $50 | $2 | $11 |
| M-23 | 52 | 40 | 60 | 10 | 8 |
| N-05 | 20 | 24 | 30 | 2 | 6 |
Assuming Konan uses the FIFO method for costing its inventory, the writedown of inventory value for Product N-05 is:
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