Salem computers merchandise inventory account at year-end is showing a balance of

Explanation:

The journal entry is shown below:

Cost of goods sold A/c Dr $1,200

           To Merchandise inventory A/c $1,200

(Being the shrinkage inventory is recorded)

The computation is shown below:

= $44,000 - $42,800

= $1,200

We simply debited the costs of goods sold and credited the merchandise inventory so that the correct posting can be done

USING LIFO METHOD

Nov 1 Opening inventory 20 [email protected]$19 =   380

Nov 4 Sales                       10 [email protected]$19   = (190)    

Nov 10 Purchases              30 [email protected]$20 = 600  

Nov 17 Sales                       20 [email protected]$20 = (400)

Nov 30 Purchases              10 [email protected]$21  = 210

Cost of merchandise sold                             600  

The correct answer is B  

Explanation:

In LIFO method of inventory valuation, most recent stocks are issued first. For instance, sales of 10 units in November 4 will be issued from the November 1 opening inventory and valued at the price of opening inventory.November 17 sales will be issued from November 10 purchases and valued at the price of November 10 purchases.