During your observation of the November 30, 20X0, physical inventory of Jay Company, you note the following unusual items:
a. Electric motors in finished goods storeroom not tagged. Upon inquiry, you are informed that the motors are on consignment to Jay Company.
b. A cutting machine (one of Jay’s principal products) in the receiving department, with a large “REWORK” tag attached.
c. A crated cutting machine in the shipping department, addressed to a nearby U.S. naval base, with a Department of Defense “Material Inspection and Receiving Report” attached, dated November 30, 20X0, and signed by the Navy Source Inspector.
d. A small, isolated storeroom with five types of dusty raw materials stored therein. Inventory tags are attached to all of the materials, and your test counts agree with the tags. What additional procedures, if any, would you carry out for each of the above? Explain.