Parts Plus, Inc , had the following FIFO perpetual inventory record for one of its inventory items at September 30, the end of the fiscal year A physical count of the inventory performed at year end revealed $83 25 (9 items) of inventory on hand Requirements 1 Journalize the adjusting entry for inv...

Req 1 Sep 30 Cost of Goods Sold 925 Inventory 9250 8325 925 Req 2 The act ...

Parts Plus, Inc., had the following FIFO perpetual inventory record for one of its inventory items at

Question:

Parts Plus, Inc., had the following FIFO perpetual inventory record for one of its inventory items at September 30, the end of the fiscal year.

Inventory on Hand Purchases Cost of Goods Sold Unit Total Unit Cost Total Unit Cost $9.00 $1,620.00 $9.00 $1,620.00 $9.1

A physical count of the inventory performed at year-end revealed $83.25 (9 items) 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 inventory record?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...