Painter Inc. sells several types of paint. Due to the low demand, it would be testing its inventory for impairment. It gathered the following information: No. brand Type Size units unit cost unit selling price (udated) Ave. Unit cost to sell 001 A A Water-based 4-liter 10 350 400 70 002 A Water-based 16-liter 20 1,150 1,300 250 003 A Acrylic 16-liter 20 1,200 1,700 300 004 B Water-based 16-liter 5 1,075 1,250 200 005 B Acrylic 4-liter 15 400 600 70 006 B Acrylic 16-liter 10 1,250 2,000 250 How much should be reported as loss from inventory write-down?
Painter Inc. sells several types of paint. Due to the low demand, it would be testing its inventory for impairment. It gathered the following information: No. brand Type Size units unit cost unit selling price (udated) Ave. Unit cost to sell 001 A A Water-based 4-liter 10 350 400 70 002 A Water-based 16-liter 20 1,150 1,300 250 003 A Acrylic 16-liter 20 1,200 1,700 300 004 B Water-based 16-liter 5 1,075 1,250 200 005 B Acrylic 4-liter 15 400 600 70 006 B Acrylic 16-liter 10 1,250 2,000 250 How much should be reported as loss from inventory write-down?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Painter Inc. sells several types of paint. Due to the low demand, it would be testing its inventory for impairment. It gathered the following information:
| No. | brand | Type | Size | units | unit cost | unit selling price (udated) | Ave. Unit cost to sell |
| 001 A | A | Water-based | 4-liter | 10 | 350 | 400 | 70 |
| 002 | A | Water-based | 16-liter | 20 | 1,150 | 1,300 | 250 |
| 003 | A | Acrylic | 16-liter | 20 | 1,200 | 1,700 | 300 |
| 004 | B | Water-based | 16-liter | 5 | 1,075 | 1,250 | 200 |
| 005 | B | Acrylic | 4-liter | 15 | 400 | 600 | 70 |
| 006 | B | Acrylic | 16-liter | 10 | 1,250 | 2,000 | 250 |
How much should be reported as loss from inventory write-down?
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