Frank Company has the following per unit original costs and replacement costs for its inventory:...
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Accounting
Frank Company has the following per unit original costs and replacement costs for its inventory: Part A: 50 units with a cost of $5, and replacement cost of $4.50 Part B: 75 units with a cost of $6, and replacement cost of $7.00 Part C: 160 units with a cost of $3, and replacement cost of $2.00 Using the lower of cost or market method applied to individual items at the end of the year, the company must:
A) Debit Inventory for $75 B) Debit Cost of Goods Sold for $110 C) Credit Inventory for $185 D) Credit Inventory for $110 E) Credit Cost of Goods Sold for $185
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