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an auditor, Francis Lee is performing a review of Platinum Company's inventory account. According to Platinum's records, the inventory balance at year-end was 740,000. However,

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an auditor, Francis Lee is performing a review of Platinum Company's inventory account. According to Platinum's records, the inventory balance at year-end was 740,000. However, the points) a following items were not considered when determining that amount. (a) The physical count did not include goods purchased by Platinum with a cost of 40,000 that were shipped FOB shipping point on December 28 and did not arrive at Platinum's warehouse until January 3. (b) Platinum sold goods costing 17,000 to Comerico Company, FOB destination, on December 28. The goods had a selling price of 28,000 and did not arrive at Comerico until January 12. The goods were not included in the physical inventory. (C) Included in the company's count were goods with a selling price of 35,000 and a cost of 25,000 that the company is holding on consignment. The goods belong to Superior Corporation. (d) The company received an order on December 29 that was boxed and sitting on the loading dock awaiting pick-up on December 31. The shipper picked up the goods on January 1 and delivered them on January 6. The shipping terms were FOB shipping point. The goods had a selling price of 49,000 and a cost of 38,000. The goods were not included in the count because they were sitting on the dock. (e) Included in the count was 12,000 of goods that were parts for a machine that the company no longer made. Given the high-tech nature of Platinum's products, it was unlikely that these obsolete parts had any other use. However, management would prefer to keep them on the books at cost Required: For each item above, determine whether the item should be (1) added to Platinum's inventory, (2) subtracted from Platinum's inventory, or (3) have no effect on Platinum's inventory. Show your adjustments by writing the amount to be adjusted in (1), (2), or (3) below If there is no effect on Platinum's inventory, write 0 (zero)" in the column of (3) No effect." (1) Add to inventory (2) Subtract from inventory (3) No effect Item (a) (b) (c) (d) (e)

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