At year-end, the perpetual inventory records of anderson co. indicate 60 units of a particular product in inventory, acquired at the following dates and unit costs:

purchased in august: 30 units at $750 per unit.
purchased in november: 30 units at $700 per unit.
a complete physical inventory taken at year-end indicates only 50 units of this product actually are on hand.
assuming that anderson uses the lifo flow assumption, it should record this inventory shrinkage by:

a. debiting cost of goods sold $7,000.
b. crediting cost of goods sold $7,500.
c. debiting cost of goods sold $7,500.
d. crediting cost of goods sold $7,000.

Jennifer purchased a house in a brand new development in the outskirts of town. when her house was built, the nearest fire department was nearly 20 miles away. as her neighborhood developed, the density of the community called for a new fire department 1.5 miles away. what effect will the new fire station have on her homeowners insurance premium? a. a new fire department will be more demanding on local taxes. her annual premium will go up. b. the location of a fire department has no bearing on the value of her house. her annual premium will stay the same. c. the new fire department will reduce the risk of financial loss in her home. her annual premium should decrease. d. with a fire department so close (less than 5 miles), financial risk on jennifer’s home practically disappears. she will not need to pay insurance anymore.