You are auditing the financial statements of TV Land Trading for the year ended December 31, 2019. TV Land which uses the FIFO inventory method. The inventory for the Mega widescreen TV shows 1,263 units at $782 for a total of $987,666. When you look at the invoices for the TVs, you see the following: Inventory Number Date Quantity UnitPrice Total
12732 11/22/14 1,000 $765 $765,000
12844 12/03/14 800 778 621,600
12905 12/28/14 600 783 469,200
Required:
Determine if the auditors need to recommend an adjustment for the cost of inventory. State yes/no and amount. Either way, show your working