On April 1, Robert LLC purchased two units of inventory, A and B. The cost of unit A was $655, and the cost of unit B was $555. On April 30, Robert LLC had not sold the inventory. The market value of unit A was now $670 while the market value of unit B was $470. The adjustment associated with the lower-of-cost-or-market method on April 30 will be:
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Cost of Goods Sold
|
70
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|
|
Inventory
|
|
70
|
|
Inventory
|
70
|
|
|
Cost of Goods Sold
|
|
70
|
|
Cost of Goods Sold
|
85
|
|
|
Inventory
|
|
85
|
|
Inventory
|
85
|
|
|
Cost of Goods Sold
|
|
85
|