You are auditing Marthas Prison Clothes, Inc., as of December 31, 2014. The inventory for orange jumpsuits

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Question:

You are auditing Martha’s Prison Clothes, Inc., as of December 31, 2014. 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 Number	Date	Quantity		Unit Price		Total
12732	11/22/13	1,000	$	765	$	765,000
12844	12/03/13	800		777		621,600
12905	12/28/13	600		782		469,200

Required:

Determine the adjusting entry, if any, for the cost of inventory at December 31, 2014. (In cases where no entry is required, please select the option "No adjusting journal entry required" for your answer to grade correctly. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

General journal	Debit	Credit
Cost of goods sold	3315
Inventory		3315

b-1.

Would your answer to part (a) be different if you saw an invoice dated January 9, 2015, for 500 suits at $750?

	Yes

b-2.

If yes, determine the adjusting entry. (In cases where no entry is required, please select the option "No adjusting journal entry required" for your answer to grade correctly. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)