Where Inventory Is Transferred in the Current Period and Some

Multiple Choice

Where inventory is transferred in the current period and some or all of that inventory is still on hand at the end of the period, the general form of financial statement adjustment is:

A) The inventory adjustment is based upon the total inventory transferred among groups.
B) The inventory adjustment is based on the profit remaining in ending inventory on hand.
C) The adjustment to inventory is made only when all inventory is sold to external groups.
D) None of the above.