Uptown Department Store Uses the Perpetual Inventory System and Has

question 164

Multiple Choice

Uptown Department Store uses the perpetual inventory system and has ending inventory with a historical cost of $610,000.The current replacement cost of the inventory is $598,000.The net realizable value is $670,000.The company uses LIFO.Before any adjustments at the end of the period,the cost of goods sold account has a balance of $930,000.Which journal entry is required under U.S.GAAP?

• A)debit Cost of Goods Sold for $60,000 and credit Inventory for $60,000
• B)debit Inventory for $60,000 and credit Cost of Goods Sold for $60,000
• C)debit Cost of Goods Sold for $12,000 and credit Inventory for $12,000
• D)debit Inventory for $12,000 and credit Cost of Goods Sold for $12,000

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Definitions:

Linear Trend Line

A straight line that best fits the data points in a scatter plot, showing a linear relationship between variables.

Quadratic Model

A mathematical model in which the relationship between the independent variable and the dependent variable is represented by a second-degree polynomial equation.

Mean Absolute Deviation

The average of the absolute differences between each data point in a set of values and the mean of that set.

Sum of Squares

is a statistical technique used to measure the dispersion or variation within a data set, calculated by squaring the differences from the mean and summing them.