Recording inventory adjustments Mabley Products, Inc. uses a perpetual inventory sys- tem to manage and account for both production inventories and finished goods inventory. At the end of each year, a physical count of inventory is taken for the audit and to satisfy management's inventory control requirements. The physical inventory just completed disclosed that the raw materials inventory was overstated by $23,890, and the finished goods inventory was overstated by $13,220.

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REQUIRED a. Record the necessary adjustment in the inventory, assuming any inventory shortages in production are normal. b. Record the necessary adjustments in the inventory account, assuming the raw materials inventory shortage is abnormal.