Question
DB Sports reports the following information related to its inventory costs and current market values: Item Cost Market Apparel $227,700 230,100 Sports goods 327,800 308,200
DB Sports reports the following information related to its inventory costs and current market values:
Item | Cost | Market | ||||
Apparel | $227,700 | 230,100 | ||||
Sports goods | 327,800 | 308,200 | ||||
Shoes | 163,400 | 165,200 | ||||
Total | $718,900 | 703,500 | ||||
Assuming that DB Sports reports inventory at the Lower of Cost or Market to inventory as a whole, what entry would they make to record this adjustment?
a. They would debit Cost of Goods Sold for $15,400 an credit Loss on Inventory for $15,400.
b. They would debit Cost of Goods Sold for $15,400 and credit Inventory for $15,400
c. They would debit Loss on Inventory for $15,400 and credit Cost of Goods Sold for $15,400.
d. They would debit Inventory for $15,400 and credit Cost of Goods Sold for $15,400.
DB Sports reports the following information related to its inventory costs and current market values:
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| Item |
| Cost |
| Market |
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| Apparel |
| $227,700 |
| 230,100 |
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| Sports goods | 327,800 |
| 308,200 |
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| Shoes |
| 163,400 |
| 165,200 |
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| Total |
| $718,900 |
| 703,500 |
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Assume that DB uses the Lower of Cost or Market on an item-by-item basis, at what amount would they report their ending inventory on the Balance Sheet?
a. $701,100
b. $718,900
c. $699,300
d. Cannot be determined
e. $703,500
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