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Your audit client has 2,000 units in ending inventory recorded at $20,000. The most recent acquisition of inventory consist of the following: Date # of

Your audit client has 2,000 units in ending inventory recorded at $20,000. The most recent acquisition of inventory consist of the following:

Date # of items $ Price per item
Dec 21 1,000 $10
Nov 30 800 $9.50
Nov 13 800 $9.00

Using the FIFO method for inventory valuation, the inventory error at the end of the period (if any) is:

A- $0; no overstatement or understatement

B- an overstatement error of $600

C- an understatement error of $600

D- an overstatement error of $1,200

E- an understatement error of $1,200

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