Sampress, Inc

question 7

Multiple Choice

Sampress, Inc., reported inventory in the 2017 year-end balance sheet, using the average cost method, as $342,000. In 2018, the company decided to change its inventory method to FIFO. If the company had used the FIFO method in 2017, ending inventory would have been $367,000. What adjustment would Sampress make for this change in inventory method?

• A) Debit Inventory for $25,000; Credit Retained earnings for $25,000.
• B) Debit Inventory for $367,000; Credit Cost of goods sold for $367,000.
• C) Debit Cost of goods sold for $25,000; Credit Inventory for $25,000.
• D) No adjustment is necessary.

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Definitions:

Native-born Workers

Employees who were born in the country where they are working, as opposed to immigrant or foreign workers.

Wage-gap

is the difference in average earnings between different groups of workers, often used to discuss disparities based on gender, race, or education.

Migration Costs

Expenses and sacrifices associated with moving from one location to another, which can include monetary costs, emotional strain, and time.

Substitute Resources

Resources or inputs that can be used in place of each other in the production process.