Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 12 Aug 2017 My Price 5.00

Martha's Prison Clothes, Inc.,

You are auditing Martha's Prison Clothes, Inc., as of December 31, 2012. The inventory for orange jumpsuits shows 1,263 suits at $782 for a total of $987,666. When you look at the invoices for the jumpsuits, you see the following:

 

Inventory #----------- Date------------ Quantity------------ Unit Price------------ Total

12732------------ 11/22/10------------- 1,000----------------- $765------------ $765,000

12844------------ 12/03/10--------------- 800------------------- 777-------------- 621,600

12905------------ 12/28/10--------------- 600------------------- 782-------------- 469,200

 

Required:

a. Determine the adjusting entry, if any, for the cost of inventory at December 31, 2012.

b. Would your answer to part (a) be different if you saw an invoice dated January 9, 2013, for 500 suits at $750?

Answers

Maurice Tutor
(5)
Status NEW Posted 12 Aug 2017 02:08 PM My Price 5.00

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