In a situation where a company has 100 units in inventory, purchased at $16 each and at the end of the accounting period, the price of each unit now costs $14 if it had to be replaced the company has to credit the inventory costs for $200. Therefore, the option C holds true.
<h3>What is the significance of inventory costs?</h3>
As per the golden rules of accounting, if any gains occur while treatment of inventory costs or any similar accounting transactions, the amount of gains or proceeds are to be credited by the company under the head of these costs.
Therefore, the option C holds true and states regarding the significance of inventory costs.
Learn more about inventory costs here:
brainly.com/question/17097250
#SPJ4
The missing part of the question has been added below for better reference.
A company has 100 units in inventory, purchased at $16 per unit, that could be replaced for $14.
A) The company should credit cost of goods sold for $200.
B) The company should debit cost of goods sold for $1,400.
C) The company should credit inventory for $200.
D) The company should debit inventory for $1,400.