[The Following Information Applies to the Questions Displayed Below

question 37

Multiple Choice

[The following information applies to the questions displayed below.]
At year-end,the perpetual inventory records of Anderson Co.indicate 60 units of a particular product in inventory,acquired at the following dates and unit costs:
Purchased in August: 30 units at $750 per unit.
Purchased in November: 30 units at $700 per unit.
A complete physical inventory taken at year-end indicates only 50 units of this product actually are on hand
-Assuming that Anderson uses the LIFO cost flow assumption,it should record this inventory shrinkage by:

• A)Debiting Cost of Goods Sold $7,000.
• B)Crediting Cost of Goods Sold $7,500.
• C)Debiting Cost of Goods Sold $7,500.
• D)Crediting Cost of Goods Sold $7,000.