Acompany normally sells its product for $20 per unit. however, the selling price has fallen to $15 per unit. this company's current fifo inventory consists of 200 units purchased at $16 per unit. net realizable value has now fallen to $13 per unit. what is the amount of the lower cost of market adjustment the company must make as a result of this decline in value?

Inventory write down to $2,600

Inventory loss of $600

Explanation:

According to the generally accepted accounting principles we always record inventory at the lower of market or net realizable value.

We record at Cost of $13/unit which gives us a total closing inventory of

Closing inventory = 13*200 = $2,600, this is the amount that is to be recorded in the balance sheet.

A loss of 16-16=$3/ unit is to be recorded, giving a total loss of 3*200 = $600

This loss can be recorded in the cost of goods sold part when the inventory is actually sold.

Hope that helps.

start by isolating the variable on one side by adding 43w^2 to both sides.   the equation will read:

25w^2+5=0

*subtract 5 from both sides*

25w^2=-5

*divide both sides by 25*

w^2=-1/5

*take the square root of both sides*

w=√(-1/5)

the square root of -1 is i.   the square root of 5 remains √5

the answer is i/√5.

hope this

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