Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 6-2 Your answer is partially correct. Try again. Kari Dewns, an auditor with Wheeler CPAs, is performing a review of Depue Company's inventory account.

image text in transcribed
image text in transcribed
Exercise 6-2 Your answer is partially correct. Try again. Kari Dewns, an auditor with Wheeler CPAs, is performing a review of Depue Company's inventory account. Depue did not have a good year, and top management is under pressure to d when boost reported income. According to its records, the inventory balance at year-end was $840,000. However, the following information was not amount Prepare a schedule to determine the correct inventory amount. (If an amount reduces the account balance then enter with a negative sign preceding the number, e.g 15,000, or parenthesis e.g. (15,000). Enter O if there is no effect.) 1. Induded in the company's count were goods with a cost of $240,000 that the company is holding on 2. The physical count did not include goods purchased by Depue with a cost of $35,000 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 $24,000 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 siting on the loading dock awaiting on December 31. The shipper picked up the goeds on January 1 and delivered them on January 6. The shipping terms were FOB shipping point. The goods had a selling price of $43,000 and a cost of The goods were not included in the count because they were sitting on the dock pick-up 3. Indluded in the inventory account was $24,000 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 $43,000 and a cost of $32,000. The goods were not included in the count because they were sitting on the dock On December 29, Depue shipped goods with a selling price of $81,000 and a cost of $59,000 to Macchia Sales Corporation FOB shipping point. The goods arrived on January 3. Macchia Sales had only ordered goods with a selling price of $12,000 and a cost of $9,000. However, a sales manager at Depue had 5. Included in the count was $31,000 of goods that were parts for a machine that the company no longer e parts had any other use. However, management would prefer to keep them on the books at cost, "since that is what we 6

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Operational Auditing A Complete Guide Practical Tools For Self Assessment

Authors: The Art Of Service Operational Auditing Publishing

2021 Edition

1867442043, 978-1867442042

More Books

Students also viewed these Accounting questions

Question

10. What is meant by a feed rate?

Answered: 1 week ago

Question

Define procedural justice. How does that relate to unions?

Answered: 1 week ago