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Kari Downs, an auditor with Wheeler CPAs, is performing a review of Bramble Company's inventory account. Bramble did not have a good year, and top
Kari Downs, an auditor with Wheeler CPAs, is performing a review of Bramble Company's inventory account. Bramble 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 $735,000. However, the following information was not considered when determining that amount. (a1) 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 $252,000 that the company is holding on consignment. The goods belong to Kroeger Corporation. 2. The physical count did not indude goods purchased by Bramble with a cost of $42,000 that were shipped FOB destination on December 28 and did not arrive at Bramble warehouse until January 3. 3. Included in the inventory account was $8,000 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
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