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Farley Bains, an auditor with Nolls CPAs, is performing a review of Novak Corp.s Inventory account Novak Corp, did not have a good year, and

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Farley Bains, an auditor with Nolls CPAs, is performing a review of Novak Corp.s Inventory account Novak Corp, did not have a good year, and top management is under pressure to boostreported income. According to its records, the inventory balance at year-end was 5829,000. However, the following information was not considered when determining that 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, eg, -15,000, or parenthesis eg. (15,000). Enter 0 if there is no effect) Ending inventory-as reported 1. Included in the company's count were goods with a cost of $347,000 that the company is holding on consignment. The goods belong to Nader Corporation. 2. The physical count did not include goods purchased by Novak Corp. with a cost of $48,000 that were shipped FOB shippine point on December 28 and did not areive at Novak Corpis warehouse until January 3. 3. Incuded in the Inventory accousit was $17,300 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 4. 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 plded up the spods on January 1 and deivered them en Jarnary b. Thes stipping terms were FOB shippiny paint. The coods had a selling price of $46.000 and a cost of $38.000. Toe soods were not incliaded in the Included in the Inventory account was $17,300 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. 4. 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 $46,000 and a cost of $38,000. The goods were not included in the count because they were sitting on the dock. 5. Included in the count was $58,500 of goods that were parts for a machine that the company no longer made. Given the high-tech nature of Novak Corp.'s products, it was unlikely that these obsolete parts had any other use. However, management would prefer to keep them on the books at cost, ' since that is what we paid for them, after all

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