Assume That the Replacement Did Not Happen in November

question 54

Multiple Choice

Assume that the replacement did not happen in November.In December,the company decided not to replace any of the 1,500 units.The entry required on December 31 to eliminate valuation accounts related to the inventory that will not be replaced will include:

• A)a debit to Excess of Replacement Cost over LIFO Cost of Inventory Liquidation for $22,500.
• B)a credit to Cost of Goods Sold for $15,000.
• C)a debit to Inventory for $70,000.
• D)a debit to Inventory for $15,000.

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Definitions:

Chronic Low Arousal

A prolonged state of reduced physiological and psychological activity, which may affect attention, motivation, and energy levels.

Stimulation Seeking

A personality trait characterized by the pursuit of novel and intense experiences and sensations.

Socioeconomic Status

An economic and sociological combined total measure of a person's work experience and of an individual's or family’s economic and social position relative to others, based on income, education, and occupation.

Aggressive Outbursts

Sudden, intense episodes of anger, violence, or aggressive behavior that can be linked to various psychological disorders.