Adjusting entry as per the? lower-of-cost-or-market rule

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Reference no: EM131217817

Exposition, Inc. had 200 units of inventory on hand at the end of the year. These were recorded at a cost of? $14 each using the? last-in, first-out? (LIFO) method. The current replacement cost is? $10 per unit. The selling price charged by? Exposition, Inc. for each finished product is? $16. As a result of recording the adjusting entry as per the? lower-of-cost-or-market rule, the gross profit will? ________.

A. increase by $2000 B. decrease by $2000 C. decrease by $800 D. increase by $800

Reference no: EM131217817

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