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Chapter 9 Is a "Take Out" Question similar to P9-7 py. 484. Accounting 103 m 2 The Spinning Reel Supply Company reviews individual inventory Items to determine if an adjustment is needed to write down an inventory Item below the current cost it is being carried on the books at. Nutomatic On December 31, 2017 an Inventory was taken for the Spin Caster Reol. The physical inventory for this item indicated there were 200 units on hand at a unit cost of $46. The replacement cost per unit of this item was currently $39. The company valued the item in the ending inventory at a unit cost of $37. Additional information on a "per unit basis" is listed below: Estimated Selling Price . . . $55.99 Estimated Selling Expense .. 9.99 Normal Profit . . . . . . . . 11.00 Required a. Compute the correct" total dollar amount to be reported as ending inventory for the Spin Caster Reel using Lower of Cost or Market at December 31, 2017 Estimated Selling Price = 55.999 b. Compute the total dollar amount of any error on Income Before Taxes for 2017, and also 2018. For 2018, assume that the 200 units on hand at December 31, 2017, were sold out during 2018. c. Compute the "correct" total dollar amount to be reported as ending inventory for the Spin Caster Reel at December 31, 2017 using Lower-of-Cost-or-Net Realizable Value LCNRV

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