BelleEnfance is a company that designs, manufactures and markets wooden toys.

You have recently been hired as Head of Accounting. At the end of 2020, you meet a representative of IY, your audit firm, in order to analyze the following trial balance you have just prepared.

All units are $.

Land: 410

Machines: 1200

Accumulated depreciation - Machines: -360

Vehicles: 500

Accumulated depreciation - Vehicles: 0

Trade receivables: 300

Cash: 134

Inventory at 30/11/2020: 702

Financial Assets: 50

Share Capital: 1100

Retained Earnings: 480

Trade payables: 319

Loan payable: 290

Sales: 8160

Purchase: - 5200

Staff cost: -1355

Other operating expenses: - 870

Interest income: 12

Interest expense: 0

Wood constitutes the only inventory of BE and it is measured according to the Weighted Average Cost (WAC) Method. Thanks to your regular and reliable work as Head of Accounting, the value of wood in the trial balance is up to date as of 30 November 2020: the company had 78 cases at a unit price according WAC method of $9.

The following transactions of December are not yet taken into account:

• 04/12/20, BE acquired 25 boxes of wood at a unit price of $9.

• From 05/12/20 to 31/12/20, BE consumed 60 boxes of wood.

Questions:

1. Please answer the following questions.

Date: 30/11/2020

Operation: Initial inventory

What are the Input Qty, Price, and Value?

What are the Output Qty, Price, and Value?

What are the Inventory Oty, Price and Value?

2. The adjustment represents an amount of $___

3. This adjustment (does not change / increases / decreases) inventory

4. This adjustment (does not change / increases / decreases) net income

5. This adjustment (does not change / increases / decreases) cash

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