A company values inventory at lower of cost and net realisable value across four commodities. Total cost of all items is $650 and the total of each item's lower amount is $610. What is the inventory write-down recognised?

1. Inventory carried at total cost would be $\$650$. 2. Inventory carried at lower of cost and net realisable value is $\$610$. 3. The write-down is the loss of value: $\$650 - \$610 = \$40$. 4. Rule out $\$610$: that is the reported carrying amount, not the write-down. _Source: Jonick, Principles of Financial Accounting (CC BY-SA 4.0), §4.1.3 "Lower of Cost or Net Realisable Value", p.123_