Matrix Company uses a periodic, weighted average inventory system. The companys accounting records showed the following related

Matrix Company uses a periodic, weighted average inventory system. The company’s accounting records showed the following related to November 2010 transactions:

On November 30, 2010, Matrix conducted a physical count of its inventory and discovered there were only 300 units of inventory actually on hand.

Requirements
1. Using the information from the physical count, correct the company’s cost of goods sold for November.
2. How would this correction change the financial statements for this month?
3. What are some possible causes of the difference between the inventory amounts in the accounting records and the inventory amount from the physicalcount?

Transcribed Image Text:

Uniis Cost Beginning inventory, November 1 400 $ 1,250 1,650 $5,175 1,300 urchases during November 4,275 Goods available for sale 4,077 Ending inventory, November 30 350