Caves Dorvalle holds 2,500 units bottles of the same vintage, with a unit cost of 12. To sell part of the lot, it has signed a firm sales contract with a restaurant owner for 1,500 units bottles at a unit price of 11. The rest of the lot sells at the current price of 16 per bottle. Estimated costs necessary to make the sale amount to 1 per bottle (case data). Determine the write-down of the lot and its carrying amount at the year-end.
- Bottles held
- 2,500
- Unit cost of a bottle
- 12
- Bottles reserved for the firm contract
- 1,500
- Contract unit price
- 11
- Current selling price
- 16
- Estimated selling costs per bottle
- 1