One Hundred Units of Inventory on Hand at the End

question 107

Multiple Choice

One hundred units of inventory on hand at the end of the year are recorded at their cost of $10 each using LIFO.Current replacement cost is $8.00.How would the Cost of goods sold be affected by the adjusting entry needed under lower-of-cost-or-market?

• A) Cost of goods sold would not be affected.
• B) Cost of goods sold would go down by $80.
• C) Cost of goods sold would go up by $200.
• D) Cost of goods sold would go down by $200.

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Definitions:

Challenge And Skill

The balance between the difficulty of a task and an individual's capability to perform it, crucial for maintaining engagement.

Technical Skill

Proficiency or expertise in specific activities related to a field of work, particularly those involving methods, processes, procedures, or techniques.

Loyalty Of People

Loyalty of people refers to the steadfast allegiance and dedication individuals display towards other people, groups, or organizations.

Demonstrating

The act of showing or revealing characteristics, benefits, or methods through practical example or experiment.