You are auditing Marthas Prison Clothes Inc. as of December 31, 2023. The inventory for orange jumpsuits
Question:
You are auditing Martha’s Prison Clothes Inc. as of December 31, 2023. 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:
Required:
a. Determine the adjusting entry, if any, for the cost of inventory at December 31, 2023 assuming the FIFO method of inventory pricing.
b. Would your answer to part (a) be different if you saw a sale posted on January 9, 2024 for 500 suits at a net amount of $750?
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Step by Step Answer:
a The cost of the jump suits should be b Yes the inventory should be adjusted to n...View the full answer
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Related Book For 
Auditing And Assurance Services
ISBN: 9781266796852
9th Edition
Authors: Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay Thibodeau
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