Frank Company has the following per unit original costs and replacement costs for its inventory:
Part A: 50 units with a cost of $5, and replacement cost of $4.50
Part B: 75 units with a cost of $6, and
Replacement cost of $7.00
Part C: 160 units with a cost of $3, and replacement cost of $2.00
Using the lower of cost or market method applied to individual items at the end of the year, the company must:
A) Debit Inventory for $75
B) Debit Cost of Goods Sold for $110
C) Credit Inventory for $185
D) Credit Inventory for $110
E) Credit Cost of Goods Sold for $185