1. Assume that your testing of the cost of the Apparel inventory proceeded without incident. In order to test the carrying cost of the snowboards you divided them by type/quality. Your testing of the low-priced boards revealed no discrepancies. As part of your testing of the carrying cost of the high-end boards, you note the following.

Vendor Invoice#DateQuantityUnit PriceTotal916705/10/21650$1150$747,5001154106/25/216001100660,0001280409/01/214001025410,000

The total quantity per the inventory count is 1050. Zooms carrying cost of these boards is $1,187,500 (the remaining balance is related to the low-end boards). Zoom uses the FIFO method.

i.Do you agree with Zooms carrying cost for the high-end snowboard inventory? If not, what adjusting entry would you propose? Show your work. (4 points)