Lamb Weston Company has four types of products in its inventory. To account for inventory, Lamb Weston applies the lower of cost and net realizable value to each product separately, at the end of each year.

Product	Quantity	Cost			Net Realizable Value
A	15	$	7		$	8
B	10		15			14
C	20		8			6
D	15		11			10

The year-end adjustment based upon the information above would include a:

Multiple Choice

• Debit to Cost of Goods Sold $65.

• Debit to Inventory $65.

• Credit to Inventory $50.

• Debit to Cost of Goods Sold $50.