At the year-end, Kalvéra holds 1,000 units dosing pumps with a unit cost of 80. It has entered into a firm sales contract for 600 units pumps at a unit price of 95. The remaining pumps will be sold at the general selling price, estimated at 70 per unit. Costs necessary to make the sale are estimated at 5 per pump for all sales (case data). Compute the write-down to recognise and the carrying amount of the pumps after the write-down.
- Number of pumps held
- 1,000
- Unit cost
- 80
- Pumps covered by the firm contract
- 600
- Contract unit price
- 95
- General unit selling price
- 70
- Estimated selling costs per pump
- 5