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Problem 1: Prior to recording adjusting entries, the Office Supplies account had a P359 debit balance. A physical count of the supplies showed P105 of unused supplies available. The required adjusting entry is:
Group of answer choices
Option 1: Debit Office Supplies Expense P254 and credit Office Supplies P254.
Option 2: Debit Office Supplies Expense P105 and credit Office Supplies P105.
Option 3: Debit Office Supplies P105 and credit Office Supplies Expense P105.
Option 4: Debit Office Supplies P254 and credit Office Supplies Expense P254.
The company uses the FIFO inventory costing method, and it computes a new, monthly, fixed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned.
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