Wonkie Company's Ending Inventory (At Cost)was $75,000

question 114

Multiple Choice

Wonkie Company's ending inventory (at cost) was $75,000. The market value of the ending inventory was $65,000. How will this affect the reported ending inventory and cost of goods sold?

• A)It will increase both ending inventory and cost of goods sold by $10,000.
• B)It will decrease ending inventory by $10,000 and increase cost of goods sold by $10,000.
• C)It will increase ending inventory by $10,000 and have no effect on cost of goods sold.
• D)It will have no effect on either ending inventory or cost of goods sold.

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