One Hundred Units of Inventory on Hand at the End

question 110

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 Gross profit be affected by the adjusting entry needed under lower-of-cost-or-market?

• A) Gross profit would not be affected.
• B) Gross profit would go down by $80.
• C) Gross profit would go up by $200.
• D) Gross profit would go down by $200.

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Definitions:

Rods and Cones

Photoreceptor cells in the retina responsible for vision in low light (rods) and color vision and detail (cones).

Bipolar Cells

Bipolar cells are a type of retinal neuron that transmit signals from the photoreceptors (cones and rods) to ganglion cells, which then transmit visual information to the brain.

Ganglion Cells

Neurons located in the retina that receive visual information from photoreceptors and transmit it to the brain.

Neural Signals

Electrical or chemical signals transmitted by neurons to communicate with each other or to muscles or glands.