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5) Do "adjustments" ever need to be made to inventory?, if so, what may cause these...

5) Do "adjustments" ever need to be made to inventory?, if so, what may cause these adjustments?

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yes, adjustments are needed for ending inventories to make its reporting correct on the financial statements.

causes of adjustments:

difference in number of inventory counted and those reported in books requires quantity adjustments and value adjustments

using periodic inventory system also warrants year end adjustments to inventory value to incorporate total effect of changes in inventories during the year.

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