At the End of Its Accounting Year, Colin Corp

question 140

Multiple Choice

At the end of its accounting year, Colin Corp.'s physical inventory count indicated that 180,000 units of inventory, costing $1.75 each, were on hand. The company's perpetual inventory system reported a balance of $357,600. The year-end adjusting entry is

• A) debit Inventory and credit Loss on Inventory Due to Count, $42,600.
• B) debit Loss on Inventory Due to Count and credit Inventory, $42,600.
• C) debit Inventory and credit Loss on Inventory Due to Count, $92,400.
• D) debit Loss on Inventory Due to Count and credit Inventory, $92,400.

---

Definitions:

Fixed Cost

Costs that do not change with the level of output, such as rent or salaries.

Cartel

A formal agreement among competing firms to control prices or exclude entry of a new competitor in the market, often resulting in higher prices.

Marginal Cost

Marginal Cost is the cost of producing one more unit of a good or service, a crucial concept in economics for decision-making and pricing strategies.

Cartel

A formal agreement among competing firms in an industry to control prices, limit output, or divide markets.