Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Farley Bains, an auctor with Nolls CPAs, is performing a review of Sarasota Corp's Inventory account. Sarasota did not have a good year, and top

image text in transcribed
image text in transcribed
Farley Bains, an auctor with Nolls CPAs, is performing a review of Sarasota Corp's Inventory account. Sarasota did not have a good year, and top management is under pressure to boost reported incoe According to its records, the inventory balance at year end was $771.550. However, the following information was not considered when determining that amount. Prepare a schedule to determine the correct inventory amount. (Show amounts that reduce Inventory with a negative sign or parenthesse 45 or parentheseses 1450 Ending inventory as reported 1. Included in the company's count were goods with a cost of $244.050 that the company is holding on consignment. The goods belong to Nader Corporation The physical countdd not include goods purchased by Sarasota with a cost of $39480 that were shipped FOB shipping point on December 28 and did not arrive at Sarasota's warehouse until January 3 3 included in the entory account was $18540 of office supplies that were stered in the warehouse and were to be used by the company's supervisors and managers during the coming year The company received an order on December 29 that was boxed and was sitting on the loading dock awaiting pick-upon 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 $43.490 and a cost of $29.070. The goods were not included in the count because they were on the dock S included in the count was $50, 100 of goods that were parts for a machine that the company no longer made. Given the high tech nature of Sarasota's products, it was unlikely that these obsolete parts had any other However, management would prefer to keep them on the books at cost, "since that is what we paid for them after all Correct inventory Farley Bains, an auditor with Nolls CPAs, is performing a review of Blossom Company's Inventory account, Blossom Company 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 $706,310. However, the following information was not considered when determining that amount Prepare a schedule to determine the correct inventory amount. Ending inventory as reported Included in the company's count were goods with a cost of $229,430 that the company is holding on consignment. The goods belong to Nader Corporation 2. The physical count did not include goods purchased by Blossom Company with a cost of $38.280 that were shipped FOB shipping point on December 28 and did not arrive at Blossom Company's warehouse until January 3. 3. Included in the Inventory account was $15.370 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. The company received an order on December 29 that was boxed and was 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 $42.500 and a cost of $27500. The goods were not included in the count because they were sitting on the dock Included in the count was $52.300 of goods that were parts for a machine that the company no longer made. Given the high-tech nature of Blossom Company's products, it was nikely that these obsolete parts had any other However, mancement would prefer to keep them on the books at cost since that is what we paid for them after all Correct inventory

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

Marketing Audit Guide What It Is Why Your Business Needs One And How To Do It

Authors: Susan G Tyson

1st Edition

B0C12D3DD6, 979-8388994868

More Books

Students also viewed these Accounting questions

Question

Find: a. t(18, 0.90) b. t(9, 0.99) c. t(35, 0.975) d. t(14, 0.98)

Answered: 1 week ago

Question

Why do mergers and acquisitions have such an impact on employees?

Answered: 1 week ago

Question

2. Describe the functions of communication

Answered: 1 week ago