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.