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:

Single Egg

Single egg refers to the result of one egg being fertilized during conception, leading to the development of one embryo, which can result in a singleton pregnancy.

Infertility

The inability to conceive a child after one year of regular, unprotected sexual intercourse.

Irregular Ovulation

Occurs when the release of eggs from the ovaries is unpredictable or does not happen at consistent intervals.

Progesterone Levels

The concentration of progesterone, a steroid hormone, in the blood which plays a crucial role in the menstrual cycle and pregnancy.