Question

Need to fill in yellow gaps in the table

Inventory Items	Historical Cost	Current Sales Price	Disposal Cost	Current Replacement Cost	Normal Mark-up (Profit Margin)
						TGIT	$20.00	$25.00	$7.15	$22.00	$8.00
TT9G5	$25.00	$30.00	$6.90	$29.00	$12.00
Inventory Items	Floor	Current Replacement Cost	Ceiling
				Choose the appropriate comparison price
TGIT	$9.85	$22.00	$17.85	i.e., the designated market value
TT9G5	$11.10	$29.00	$23.10
Inventory Items	Historical Cost	Designated Market Value	Adjustment
				compare designated market value to
TGIT	$20.00			historical cost, and calculate adjustment per unit
TT9G5	$25.00
Inventory Items	Write Down?	Units in Inventory	Total Write-Down
TGIT	Yes	60,000
TT9G5	Yes	90,000
Correcting Entries
COGS or Inventory
Inventory or COGS
To record the write down of inventory

Answer 1

Inventory Items	Historical Cost	Designated Market Value	Adjustment
TGIT	$               20.00	$                                      17.85	$                        2.15
TT9G5	$               25.00	$                                      23.10	$                        1.90
Inventory Items	Write Down?	Units in Inventory	Total Write-Down
TGIT	Yes	60000	$                129,000
TT9G5	Yes	90000	$                171,000
Correcting Entries
COGS		$                                300,000
Inventory			$                300,000
To record the write down of inventory