he cumulative journal entry adjustment that Acme Inc. recorded on the first day of fiscal 2020 is:

Dr. Inventory 43,805

Cr. Deferred income tax liability 10,951

Cr. Retained earnings 32,854

Ignore the credit to deferred income tax liability. What does this tell you about the general trend of inventory production costs over time (consider a longer period than just the past two years)? And why is retained earnings credited instead of Cost of Goods Sold?