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Depue Decor did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance

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Depue Decor did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at year-end was $740,000. However, the following information was not considered when determining that amount. 1. Included in the company's count were goods with a cost of $250,000 that the company is holding on consignment. The goods belong to Kroeger Company. 2. The physical count did not include goods purchased by Depue with a cost of $40,000 that were shipped FOB destination on December 28 and did not arrive at Depue warehouse until January 3. 3. Included in the inventory account was $14,000 of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year. 4. 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 $40,000 and a cost of $28,000. The goods were not included in the count because they were sitting on the dock. 5. On December 29. Depue shipped goods with a selling price of $80,000 and a cost of $60,000 to Macchia Company FOB shipping point. The goods arrived on January 3. Macchia had only ordered goods with a selling price of $10,000 and a cost of $8,000. However, a sales manager at Depue had authorized the shipment and said that ir Macchia wanted to ship the goods back next week, it could. 6. Included in the count was $31,000 of outdated products that were unlikely to be sold, Management determined that they had a net realizable value of $0. Provide explanations for each item above, saying why you did or did not make an adjustment for each item

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