Response to the following problem:
Quaker Hospital provides you with the following information about the purchase and usage of one of its billable supply items:
|
|
|
|
Units
|
Cost
Per Unit
|
Total
|
|
June
|
1
|
Inventory
|
300
|
$4.00
|
$1,200
|
|
|
5
|
Purchase
|
500
|
4.60
|
2,300
|
|
|
10
|
Usage
|
400
|
|
|
|
|
15
|
Purchase
|
450
|
5.20
|
2,340
|
|
|
20
|
Usage
|
550
|
|
|
|
|
27
|
Purchase
|
200
|
5.50
|
1,100
|
This supply item is billed to patients at $8.00 per unit.
Required: Assume that Quaker Hospital employs the perpetual LIFO system of accounting for this supply item.
(1) Prepare an inventory ledger card for the month of June.
(2) Prepare, in general journal form, all necessary entries for the month of June.
(3) Assume that the physical inventory at June 30 indicates that 480 units are on hand in the inventory. What adjusting entry, if any, would you suggest?