Robyn's Retail Had 500 Units of Inventory on Hand at the End

question 134

Multiple Choice

Robyn's Retail had 500 units of inventory on hand at the end of the year.These were recorded at a cost of $19 each using the last-in,first-out (LIFO) method.The current replacement cost is $17 per unit.The selling price charged by Robyn's Retail for each finished product is $27.In order to record the adjusting entry needed under the lower-of-cost-or-market rule,the Merchandise Inventory will be ________.

• A)debited by $8,500
• B)credited by $8,500
• C)debited by $1,000
• D)credited by $1,000

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Definitions:

Framework

An essential structure underlying or supporting a system, concept, or text.

Measuring

The process or technique of determining the extent, dimensions, quantity, or capacity of something, typically by comparison with a standard.

Planning

The process of thinking about and organizing the activities required to achieve a desired goal, involving the creation and maintenance of a plan.

Controlling

The process of monitoring performance, comparing it with goals and standards, and taking corrective action when necessary.