Sandra,Inc

question 101

Multiple Choice

Sandra,Inc.had 200 units of inventory on hand at the end of the year.These were recorded at a cost of $16 each using the last-in,first-out (LIFO) method.The current replacement cost is $12 per unit.The selling price charged by Sandra,Inc.for each finished product is $20.In order to record the adjusting entry needed under the lower-of-cost-or-market rule,the Cost of Goods Sold will be ________.

• A)debited by $2,400
• B)credited by $2,400
• C)debited by $800
• D)credited by $800

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Definitions:

Output Standards

The pre-determined levels of performance or production that a process or system is expected to achieve.

Input Standards

Benchmarks or criteria used to measure the quantity, quality, or timeliness of resources used in a production process or project.

Critical Path

In project management, it is the longest sequence of tasks that must be finished on time for the whole project to be completed on schedule.

Quickest Time

The shortest duration within which an action can be completed or a goal can be achieved.