Sandra,Inc

Multiple Choice

Sandra,Inc.had 200 units of inventory on hand at the end of the year.These were recorded at a cost of $16 each using the last-in,first-out (LIFO) method.The current replacement cost is $12 per unit.The selling price charged by Sandra,Inc.for each finished product is $20.In order to record the adjusting entry needed under the lower-of-cost-or-market rule,the Cost of Goods Sold will be ________.

A) debited by $2,400
B) credited by $2,400
C) debited by $800
D) credited by $800