SC Inc has the following LIFO perpetual inventory records Da

S&C Inc. has the following LIFO perpetual inventory records:

Date

Purchases

Cost of Goods Sold

Inventory on Hand

December 1

$3,000

December 7

$900

$3,900

December 18

$900

$3,000

December 31

$200

$3,200

The current replacement cost of the ending inventory is $2,400. To apply the

lowerminusofminuscostminusorminusmarket

rule, the journal entry would be:

A.

debit Cost of Goods Sold $800, credit Inventory $800

B.

debit Inventory $900, credit Cost of Goods Sold $900

C.

debit Inventory $800, credit Cost of Goods Sold $800

D.

debit Cost of Goods Sold $900, credit Inventory $900

Date	Purchases	Cost of Goods Sold	Inventory on Hand
December 1			$3,000
December 7	$900		$3,900
December 18		$900	$3,000
December 31	$200		$3,200

Solution

Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Amount Cost of ending inventory                  3,200.00 Replacement Cost or market value                  2,400.00 Lower of cost or market value                    2,400.00 Thus inventory needs to be reduced by 800 (3200 - 2400) A. debit Cost of Goods Sold $800, credit Inventory $800