me the correctory E6.2 (LO 1) Rachel Warren, an auditor with Laplante CPA, is performing a review of Sci Laplante CPA, is performing a review of Schuda Company's inventory account. Schuda did not have a w ear and bod year, and top management is under pressure to boost management is under pre reported income. According to its records them e d was 740.000. Howeve the following information was not considered when determining that amount 1. Included in the company's count were goods with a cost of $250,000 that the company is holding on consignment. The goods belong to Harmon Corporation 2. The physical count did not include goods purchased by Schuda with a cost of $40,00 shipped FOB destination on December 28 w du art Schuda's warehouse until January 5. 3. Included in the inventory account was $14 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 ROR shimini The shada selling price of $40000 and a cost of $28,000. The goods were not included in the count because they were sitting on the ca. 5. On December 29, Schuda shipped goods with a selline price of $80.000 and a cost of $60,000 to Reza Sales Corporation FOB shipping point. The goods arrived on January 3. Reza had only ordered goods with a selling price of $10.000 and a cost of $8. However sales manager at Schuda had authorized the shipment and said that if Reza wanted to ship the goods back next week, it could 6. Included in the count was $40.000 of goods that were parts for a machine that the company no longer made. Given the high-tech nature of Schuda'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." Instructions Prepare a schedule to determine the correct inventory amount. Provide explanations for each item above, saying why you did or did not make an adjustment for each item. tify items in inventory. E6.3 (01) Gato Inc. had the following inventory situations to consider at January 31, its year-end. a. Goods held on consignment for Steele Corp. since December 12. b. Goods shipped on consignment to Logan Holdings Inc, on January 5. c. Goods shipped to a customer, FOB destination, on January 29 that are still in transit. d. Goods shipped to a customer, FOB shipping point, on January 29 that are still in transit. e. Goods purchased FOB destination from a supplier on January 25 that are still in transit. . Goods purchased FOB shipping point from a supplier on January 25 that are still in transit. g. Office supplies on hand at January 31. Instructions Identify which of the preceding items should be included in inventory. If the item should not be included in inventory, state in what account, if any, it should have been recorded