On April 1, a company purchased two units of inventory, A and B. The cost of unit A was $640, and the cost of unit B was $565. On April 30, the company had not sold the inventory. The net realizable value of unit A was now $660 while the net realizable value of unit B was $485. The adjustment associated with the lower of cost and net realizable value on April 30 will be: 1. Cost of Goods Sold 60 60 Inventory 2 60 Inventory Cost of Goods Sold 60 80 3. Cost of Goods Sold 80 Inventory 4.Inventory 80 Cost of Goods Sold 80 Multiple Choice Option 3 о Option 4 Option 2 Option 1
On April 1, a company purchased two units of inventory, A and B. The cost of unit A was $640, and the cost of unit B was $565. On April 30, the company had not sold the inventory. The net realizable value of unit A was now $660 while the net realizable value of unit B was $485. The adjustment associated with the lower of cost and net realizable value on April 30 will be: 1. Cost of Goods Sold 60 60 Inventory 2 60 Inventory Cost of Goods Sold 60 80 3. Cost of Goods Sold 80 Inventory 4.Inventory 80 Cost of Goods Sold 80 Multiple Choice Option 3 о Option 4 Option 2 Option 1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On April 1, a company purchased two units of inventory, A and B. The cost of unit A was $640, and the cost of unit B was $565. On April 30, the company had not sold the inventory. The
net realizable value of unit A was now $660 while the net realizable value of unit B was $485. The adjustment associated with the lower of cost and net realizable value on April 30 will
be:
1.
Cost of Goods Sold
60
60
Inventory
2
60
Inventory
Cost of Goods Sold
60
80
3.
Cost of Goods Sold
80
Inventory
4.Inventory
80
Cost of Goods Sold
80
Multiple Choice
Option 3
о
Option 4
Option 2
Option 1
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