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        <a class="WebWorks_Breadcrumb_Link" href="inventory.10.1.htm#1087827">Inventory</a> &gt; <a class="WebWorks_Breadcrumb_Link" href="inventory.10.4.htm#1087827">Making inventory adjustments</a> &gt; Examples of inventory adjustments</div>
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      <blockquote>
        <div class="hm_ModuleHeading"><a name="1087827">Examples of inventory adjustments</a></div>
        <div class="b_Body"><a name="1101197">The following are some examples of inventory adjustments. </a></div>
        <div class="hr_RunInHeading"><a name="1087828">Example 1a </a></div>
        <div class="b_Body"><a name="1087829">This inventory adjustment increases the number </a>of items on hand by two and the total value of the items on hand by $700.</div>
        <div class="gcl_GraphicCellLeft"><a name="1157896"><img id="1157894" class="Default" src="images/inventory.10.5.1.png" width="553" height="66" style="display: inline; float: none; left: 0.0; text-align: left; top: 0.0;" /></a></div>
        <div class="hr_RunInHeading"><a name="1087842">Example 1b</a></div>
        <div class="b_Body"><a name="1087843">This inventory adjustment increases the number </a>of items on hand by two but does not adjust the total value of the items. The average cost of the items will decrease as result of this adjustment.</div>
        <div class="gcl_GraphicCellLeft"><a name="1157920"><img id="1157918" class="Default" src="images/inventory.10.5.2.png" width="555" height="58" style="display: inline; float: none; left: 0.0; text-align: left; top: 0.0;" /></a></div>
        <div class="hr_RunInHeading"><a name="1087857">Example 2</a></div>
        <div class="b_Body"><a name="1087858">This inventory adjustment increases the total value </a>of the items on hand by $120 but does not change the number of items on hand. The average cost of the items will increase as a result of this adjustment.</div>
        <div class="gcl_GraphicCellLeft"><a name="1157965"><img id="1157963" class="Default" src="images/inventory.10.5.3.png" width="554" height="61" style="display: inline; float: none; left: 0.0; text-align: left; top: 0.0;" /></a></div>
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