Question
On April 1, a company purchased two units of inventory, A and B. The cost of unit A was $650, and the cost of unit
On April 1, a company purchased two units of inventory, A and B. The cost of unit A was $650, and the cost of unit B was $625. On April 30, the company had not sold the inventory. The net realizable value of unit A was now $685 while the net realizable value of unit B was $550. Find the adjustment associated with the lower cost and net realizable value on April 30.
1. | Cost of Goods Sold | 40 | |
Inventory | 40 | ||
2. | Inventory | 40 | |
Cost of Goods Sold | 40 | ||
3. | Cost of Goods Sold | 75 | |
Inventory | 75 | ||
4. | Inventory | 75 | |
Cost of Goods Sold | 75 |
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Cornerstones of Financial and Managerial Accounting
Authors: Rich Jones, Mowen, Hansen, Heitger
1st Edition
9780538751292, 324787359, 538751290, 978-0324787351
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