9.58 FIFO Inventory Pricing. You are auditing Marthas Prison Clothes Inc. as of December 31,

2014. 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:

Inventory Number Date Quantity Unit Price Total

12732 11/22/13 1,000 $765 $765,000

12844 12/03/13 800 $777 621,600

12905 12/28/13 600 782 469,200

Required:

a. Determine the adjusting entry, if any, for the cost of inventory at December 31, 2014.

b. Would your answer to part (a) be different if you saw an invoice dated January 9, 2015,

for 500 suits at $750?

will you please explain the calculation and the adjusting entry for questions a, b, thank you for your help, and please don't forget the steps how you get the answers.