IIA Business Knowledge for Internal Auditing IIA-CIA-Part3 Question # 13 Topic 2 Discussion

IIA Business Knowledge for Internal Auditing IIA-CIA-Part3 Question # 13 Topic 2 Discussion

IIA-CIA-Part3 Exam Topic 2 Question 13 Discussion:
Question #: 13
Topic #: 2

An organization has 1,000 units of a defective item in stock. Per unit, market price is $10; production cost is $4; and the defect selling price is $5. What is the carrying amount (inventory value) of defects at year-end?


A.

$0


B.

$4,000


C.

$5,000


D.

$10,000


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