Mobile Security, Inc. (MSI) has been an audit client of Leo \& Lee, LLP for the past 12 years MSI is a small, publicly traded aviation compary based in Cleveland, Ohio, where it manufactures high-tech unmanned aerial vehicles (UAV], also known as drones, and other surveillance and security equipment. MSl's products are primarily used by the military and scientific research institutions, but there is growing demand for UAVs for commercial and recreational use. MSI must go through an extersive bidding pracess for large government cantracts. Because of the sensitive nature of government contracts and military product designs, bath the facilities and records of MSI must be highly secured. In October 2025, MSI installed a new claud-based imentory costing system to replace a system that had been developed in-hause. The old system could no longer keep up with the complex and detailed manufacturing casting process that provides information to suppart competitive bidding. MSl's IT department, tagether with cansultants from the software company, implemented the new irwentory costing system, which went live on December 1, 2025 . Key aperational staff and the internal audit team from MSI were significantly engaged in the selection, testing, training, and implementatian stages. The irwentory costing system uses variaus manufacturing costing and unit of productian inputs to calculate and produce a database of all product costs and recommended sales prices. It also integrates with the general ledger each time there are product inwentary movements such as purchases, sales, waste, and damaged irwentory losses. The following list of sales invaices are entered in the sales journal for the months of June 2026 and July 2026 , respectively. All goods are shipped FOB shipping point. Analysis and evaluation: Analyze the eight transactions shown above. Based an a sales cutaff analysis, record necessary adjusting journal entries at June 30 in cannection with the foregoing data (Credit occount titles are automatically indented when amount is entered Do not indent monually. If no entry is required, select "No entry" for the account tities and enter O for the amounts: Mobile Security, Inc. (MSI) has been an audit client of Leo \& Lee, LLP for the past 12 years MSI is a small, publicly traded aviation compary based in Cleveland, Ohio, where it manufactures high-tech unmanned aerial vehicles (UAV], also known as drones, and other surveillance and security equipment. MSl's products are primarily used by the military and scientific research institutions, but there is growing demand for UAVs for commercial and recreational use. MSI must go through an extersive bidding pracess for large government cantracts. Because of the sensitive nature of government contracts and military product designs, bath the facilities and records of MSI must be highly secured. In October 2025, MSI installed a new claud-based imentory costing system to replace a system that had been developed in-hause. The old system could no longer keep up with the complex and detailed manufacturing casting process that provides information to suppart competitive bidding. MSl's IT department, tagether with cansultants from the software company, implemented the new irwentory costing system, which went live on December 1, 2025 . Key aperational staff and the internal audit team from MSI were significantly engaged in the selection, testing, training, and implementatian stages. The irwentory costing system uses variaus manufacturing costing and unit of productian inputs to calculate and produce a database of all product costs and recommended sales prices. It also integrates with the general ledger each time there are product inwentary movements such as purchases, sales, waste, and damaged irwentory losses. The following list of sales invaices are entered in the sales journal for the months of June 2026 and July 2026 , respectively. All goods are shipped FOB shipping point. Analysis and evaluation: Analyze the eight transactions shown above. Based an a sales cutaff analysis, record necessary adjusting journal entries at June 30 in cannection with the foregoing data (Credit occount titles are automatically indented when amount is entered Do not indent monually. If no entry is required, select "No entry" for the account tities and enter O for the amounts