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Requirement. Evaluate these inventories to determine the amount of write-down, if any. Begin the evaluation for impairment of inventory with the product. The net
Requirement. Evaluate these inventories to determine the amount of write-down, if any. Begin the evaluation for impairment of inventory with the product. The net realizable value of the finished goods is $ and the cost per unit of finished goods is $ so Alphas do to be written down. The raw materials do to be evaluated for impairment. Evaluate the Betas product. The net realizable value of the finished goods is $ and the cost per unit of finished goods is $, so Betas do to be written down. The raw materials do to be evaluated for impairment. The inventory write-down computations for and its raw materials are as follows. (NRV = Net realizable value. Enter a "0" if no write-down is required.) Cost per Inventory item Finished goods # Units unit Replace- ment cost Net realizable value Total Total cost replacement cost/ Data table NRV Write-down 30 $ 450 n/a $ 425 Raw material A 30 20 $ 18 n/a Raw material B 100 6 11 n/a Raw material C 60 60 40 n/a Total raw materials Net realizable Cost per Replace- Inventory item # Units unit ment cost value Alphas Raw material A 30 $ 20 $ 18 Raw material B 100 8 11 Raw material C 60 60 40 Conversion cost Finished goods Betas 300 30 450 Raw material D 500 3 2 Raw material E Conversion cost Finished goods 1,200 10 8 90 15 490 Print Done 425 625
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