Cement Company, Inc A) Option a
B) Option B
C) Option C
D)

question 83

Multiple Choice

Cement Company, Inc. began the first quarter with 1,000 units of inventory costing $25 per unit. During the first quarter, 3,000 units were purchased at a cost of $40 per unit, and sales of 3,400 units at $65 per units were made. During the second quarter, the company expects to replace the units of beginning inventory sold at a cost of $45 per unit. Cement Company uses the LIFO method to account for inventory.
-What is the correct journal entry to record cost of goods sold at the end of the first quarter? $$\begin{array} { | l | l | r | r | } \hline \text { A) } & \text { Inventory } & 8,000 & \\\hline & \text { Cost of Goods Sold } & & 8,000 \\\hline \text { B) } & \text { Inventory } & 8,000 & \\\hline & \text { Excess of replacement cost over historical cost of LIFO liquidation } & & 8,000 \\\hline \text { C) } & \text { Cost of goods sold } & 138,000 & \\\hline & \text { Inventory } & & 130,000 \\\hline & \text { Excess of replacement cost over historical cost of LIFO liquidation } & & 8,000 \\\hline \text { D) } & \text { Cost of goods sold } & 130,000 & \\\hline & \text { Excess of replacement cost over historical cost of LIFO liquidation } & 8,000 & \\\hline & \text { Inventory } & & 138,000 \\\hline \text { E) } & \text { No journal entry is required } & & \\\hline\end{array}$$

• A) Option A
• B) Option B
• C) Option C
• D) Option D
• E) Option E

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