Brandon,Inc.has 500 units in inventory that were purchased for $24 each.These units have a current market value of $30 each.Brandon's supplier has just announced a price increase to $33 that will go into effect at the beginning of next year.Management should:
A) make no adjustments to the inventory account.
B) adjust the inventory account using the lower of the recent market values,which is $30.00.
C) adjust the inventory account using the cost,which is $24.00.
D) adjust the inventory account using the average of the recent market values,which is $33.00.
Correct Answer:
Verified
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