Need help with this accounting question answer do fast Sandork, Inc., has 200 units of inventory which are currently pricedat $4.90 per unit at the market. Originally this inventory cost $5.50per unit from an order of 400. Sandork, Inc., should take whatfollowing steps?a. Dr. Loss on inventory write-down, 120; Cr. Inventory, 120.b. Dr. Loss on inventory write-down, 240; Cr. Inventory, 240.c. Dr. Inventory, 240; Cr. Loss on inventory write-down, 240.d. Dr. Inventory, 120; Cr. Loss on inventory write-down, 120.e. Make no entry.

Explanation: In the given case, it is given that the entity had 400 units in inventory that costed…

Answered: Sandork, Inc., has 200 units of…

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 67P

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Sandork, Inc., has 200 units of inventory which are currently priced at $4.90 per unit at the market. Originally this inventory cost $5.50 per unit from an order of 400. Sandork, Inc., should take what following steps? a. Dr. Loss on inventory write-down, 120; Cr. Inventory, 120.1 b. Dr. Loss on inventory write-down, 240; Cr. Inventory, 240.1 c. Dr. Inventory, 240; Cr. Loss on inventory write-down, 240.1 d. Dr. Inventory, 120; Cr. Loss on inventory write-down, 120.1 e. Make no entry.
e? Explain the financial statement effect of inventory cost flow assumptions. BE6.6 (LO 2), AP In its first month of operation, Hoffman Company purchased 100 units of inventory for $6, then 200 units for $7, and finally 140 units for $8. At the end of the month, 180 units remained. Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO. Explain why this amount is referred to as phantom profit. The company uses the periodic system. Determine correct income statement amounts.
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