Question

Goods placed in inventory are initially recorded at:

a. Market value.
b. The amount paid to acquire the asset.
c. The amount paid to prepare the asset for sale to customers.
d. The amount paid to acquire the asset and prepare it for sale

Answer 1

Goods placed in inventory are initially recorded at the amount paid to acquire the asset and prepare it for sale. This includes the cost of acquiring the asset and any costs incurred to prepare it for sale. Option d.

Step-by-step explanation:

Goods placed in inventory are initially recorded at: d. The amount paid to acquire the asset and prepare it for sale.

When recording inventory, it is important to consider the cost of acquiring the asset as well as any costs incurred to prepare it for sale. This includes costs such as transportation, storage, and any necessary modifications or enhancements. By recording the total amount paid to acquire and prepare the asset for sale, the company can accurately reflect its investment in inventory and determine its value.