Kim's Retail Had 800 Units of Inventory on Hand at the End

question 136

Multiple Choice

Kim's Retail had 800 units of inventory on hand at the end of the year. These were recorded at a cost of $15 each using the last-in, first-out (LIFO) method. The current replacement cost is $11 per unit. The selling price charged by Kim's Retail for each finished product is $18. In order to record the adjusting entry needed under the lower-of-cost-or-market rule, the Merchandise Inventory will be ________.

• A) debited by $8,800
• B) credited by $8,800
• C) debited by $3,200
• D) credited by $3,200

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Definitions:

Unconditioned Response

An automatic and natural reaction to a stimulus that does not require learning.

Increased Heartbeat

A condition where the heart rate speeds up, typically in response to exercise, stress, or excitement.

Positive Reinforcement

A process in behavior modification that involves giving a reward to reinforce a desired behaviour, encouraging its repetition.

Extrinsic Reinforcement

Motivation or reward that comes from outside an individual, such as money, grades, or praise, which can influence behavior.