Sport Sunglasses had the following FIFO perpetual inventory record at November 30, the end of the fiscal year.

A physical count of the inventory performed at year end revealed $172.20 of inventory on hand.

Requirements
1. Journalize the adjusting entry for inventory, if any is required.
2. What could have caused the value of the ending inventory based on the physical count to be lower than the amount based on the perpetual inventoryrecord?

Transcribed Image Text:

Purchases Cost of Goods Solod Inventory on Hand Unit Total Unit Total Unit Total Cost Quantity Cost Date QuantityCost D Cost QuantityCost C Nov 1 Cost $6.00 $900.00 1406.0$847.00 150 150 Nov 3 Nov 7 Nov 13 $6.00 900.00 140 $6.05 $847.00 130 $6.00 S 780.00 $6.00 $120.00 20 140 $6.05 $847.00 20 $6.00 $120.00 140 $6.05 $847.00 90 90 $6.15 553.50 $6.15 $553.50 20 $6.00 S 120.0055 6.05 $332.75 $6.15 $553.50 Nov 18 Nov 25 Nov 30 85 $6.05 S51425 55 $6.05 S 332.75 $6.15 S 369.00 $2,116.00 90 60 350 30 30 $6.15 $184.50 $184.50 230 $1,400.50