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Cypress Co. has the following LIFO perpetual inventory records: Date December 1 December 7 December 18 December 31 $1,700 Purchases Cost of Goods Sold Inventory on Hand $4,050 $5,250 $4,250 $5,950 $1,200 $1,000 The current replacement cost of the ending inventory is $3,200. To apply the lower-of-cost-or-market rule, the journal entry would be: O A. Debit Cost of Goods Sold $2,750, credit Inventory $2,750 O B. Debit Inventory $2,750, credit Cost of Goods Sold $$2,750 O C. Debit inventory $1,000, credit Cost of Goods Sold $1,000 O D. Debit Cost of Goods Sold $1,000, credit Inventory $1,000

Lionworks Enterprises had the following inventory data Date July 1 Beginning inventory July 4 Purchase July 7 Sale July 11 Purchase July 14 Sale Quantity Unit Cost $51 $52 10 12 $58 8 Assuming LIFO, what is the cost of goods sold for the July 14 sale? O A. $464 B. $416 OC. $446 OD. $522

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Q1 Lower of replacement cost or LIFO value = 3200 Hence inventory value should be reduce by 5950-3200 2750 Account title cost of goods sold Inventory option A is correct Debit credit 2750 2750 Q2 LIFO means latest purchase should be sold first cost of goods sold for July 14 (8*58) option A is correct 464 커 Sheet1 126 . Sheet1 127-/ Sheet1128 . Sheet1 129 . Sheet1 130 ·Sheet1 13 (Sheet11 . Sheeti13: l ENG 10-28 US 15/01/2019

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