Wakefield Company Uses a Perpetual Inventory System

question 26

Multiple Choice

Wakefield Company uses a perpetual inventory system. In August, it sold 2,000 units from its LIFO-base inventory, which had originally cost $35 per unit. The replacement cost is expected to be $45 per unit. The company is planning to reduce its inventory and expects to replace only 1,500 of these units by December 31, the end of its fiscal year. The company replaced 1,500 units in November at an actual cost of $50 per unit.
Based on the preceding information, in the entry to record the replacement of the 1,500 units in November, Inventory will be debited for:

• A) $52,500.
• B) $75,000.
• C) $67,500.
• D) $60,000.

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Definitions:

Explanation

Providing information or clarification about a topic or concept to aid in understanding.

Team Members

Individuals who are part of a group working together towards a common goal or project.

Short-term Priorities

Objectives or tasks that need immediate attention and are planned to be achieved in the near future.

Fact-based Meetings

Discussions or conferences where decisions and discussions are driven by data and empirical evidence rather than assumptions or opinions.