The Replacement Costs Have Increased from $5 $\quad$ $\quad$

question 44

Multiple Choice

The replacement costs have increased from $5.60 per unit to $6.20 per unit from the time 200 units of inventory were purchased.The year-end audit found 120 units remaining in stock.What entry is required?

• A) Cost of goods sold \( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)72
• \( \quad \)Invertory \( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)72
• B) Inventcry \( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \) 72
• \( \quad \)Cost of goods sold \( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)72
• C) Cost of goods sold \( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)48
• \( \quad \)inventory \( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)48
• D) Inventory \( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)48
• \( \quad \)Cost of goods sold \( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \) 48
• E)Make no entry.

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Definitions:

Physiological

Pertaining to the normal functioning and activities of living organisms and their parts.

Situational

Relating to or dependent upon a particular set of circumstances or environment.

Cognitive

Relating to mental processes such as perception, memory, thought, and problem-solving, crucial for understanding, learning, and decision-making.

Social Referencing

Using another person’s reaction to a situation to form one’s own assessment of it.