Enviro Corporation Had the Following Items as Inventory as at December

question 24

Multiple Choice

Enviro Corporation had the following items as inventory as at December 31, 2020: $$\begin{array} { c l c c } \text { Item No. } & \text { Quantity } & \text { Unit Cost}&\text { NRV } \\\text { A1 } & 130 & \$ 8.00 & \$ 8.40 \\\text { B4 } & 190 & 5.00 & 4.90 \\\text { C2 } & 190 & 12.00 & 12.90 \\\text { D3 } & 160 & 11.00 & 10.90\end{array}$$ Assume that Enviro uses a perpetual inventory system and that none of the inventory items can be grouped together for accounting purposes. The year-end adjusting entry should include a charge to cost of goods sold of

• A) $223.
• B) $188.
• C) $35.
• D) $0.

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