Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Farley Bains, an auditor with Nolls CPAs, is performing a review of Teal Mountain Inc's Inventory account. Teal Mountain did not have a good year,

image text in transcribed
Farley Bains, an auditor with Nolls CPAs, is performing a review of Teal Mountain Inc's Inventory account. Teal Mountain 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 $808,200. 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 parenthesis 28.-45 or parentheses es.(45).) $ Ending inventory-as reported 1 Included in the company's count were goods with a cost of $224,170 that the company is holding on consignment. The goods belong to Nader Corporation. 2 3 The physical count did not include goods purchased by Teal Mountain with a cost of $38,530 that were shipped FOB shipping point on December 28 and did not arrive at Teal Mountain's warehouse until January 3. Included in the Inventory account was $18,300 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 $37.470 and a cost of $30,800. The goods were not included in the count because they were sitting on the dock

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

College Physics

Authors: OpenStax

2nd Edition

171147083X, 978-1711470832

Students also viewed these Accounting questions