Ignore writing, I would just like to know if I am doing this correctly. If not,
ID: 2529707 • Letter: I
Question
Ignore writing, I would just like to know if I am doing this correctly. If not, I would appreciate corrections.
ACME Distribution, Inc. Decembor 31, 2016 Adjusting Entries Continued 3) The company takes a physical inventory count at the end of the year and adjusts t sold if there is a difference between the inventory value determined from the the genera! ledger. The information below includes the and the purchases of inventory during the month. heir inventory and cost of goods actual count compared to the value in number of units counted in inventory at the end of the year Number of units held in the company's inventory at 12/31/2016 based on a c A listing of purchases during the month of December are as follows: ount of the inventory was 17.728 units. Quantity Purchased Unit st Total Cost Date December 5, 2016 December 14, 2016 December 21, 2016 3.75 56,250 4.00 $ 26,000 4.50 $ 93.750 15,000 6,500 $ 7,500$ 04.00 The compapy uses FIFO to account for its inventory cost. What is the cost of the company's ending inventory (round answer to nearest dollar and show your calculation below for full credit)? 73.7 3.43 5.00 11972 37.75 7 3.73 41.272 l Sov .(45)-37.750 The balance in inventory per the unadjusted trial balance before making any adjustments is $76,730. What is the amount of the December 31 adjustment to inventory cost (show your calculation below for full credit)? 73.733 Complete below the adjusting journal entry necessary for inventory: Debit Credit Account description otoods al ob Post the above entry to the trial balance in the adjustment columnsExplanation / Answer
Except depreciation amount, everything else is correctly calculated.
Depreciation should be charged for half year only since the asset was purchased in the 2nd half of the year.
Depreciation = (cost of asset - salvage value) ÷ 7 years × 0.5 years = $3236