Problem
At the end of the year, Lawton Company's accounting records showed that they had 50 items in stock at a FIFO cost of $25 each. These normally sell for $40 each. Due to increased competition, these items can now be sold for only $30 each.
What is the amount of an adjustment, if any, that must be made to the value of the inventory at year-end? Enter digits only, with no commas, decimal points, or dollar signs. Type 0 if no adjustment is needed.