Current Attempt in Progress Farley Bains, an auditor with Nolls CPAs, is performing a review of Teal Mountin Congarys linventory acrount, Teal Mourtain ded mat. have a good year, and top management is under pressure to boont reported income. According to its records, the ime intur biarese at: year-end was $888,000. However, the following information was not considered when deterrining thvt anpum. 1. Included in the company's count were goods with a cost of $273,000 that the company hichine on conshomert. The pods belong to Nader Corporation. 2. The physical count did not include goods purchased by Teal Mountain with a cost of $49,000 that were shipeed 50 shipears point on December 28 and did not arrive at Teal Mountair's warehouse until danuary 3. 3. Included in the Inventory account was $20,400 of office supplies that were stored in the warehause and weren to be ined by the company's supervisors and managers during the coming vear. 4. The company received an order on December 29 that was bowed and was sitting on the loading dock awaliningick upon. December 31 . The shipper picked up the goods on January 1 and delivered them on darnary 6 . The shippingterms were Foe shipping point. The goods had a selling price of $48,000 and a cost of $34,800. The goods were not included in the court because they were sitting on the dock. 5. Included in the count was $60,000 of goods that were parts for a machine that the company no longer made. Given the hightech nature of Teal Mountain's products, it was unlikely that these obsolete parts had any other use. However, manazament. would prefer to keep them on the books at cost, "since that is what we paid for them, after all