A staff member at Cedar Grove Medical Supply conducted the monthlyinventory audit. The computerized system indicated a beginning balanceof 850 units, with purchases of 420 units and departmental issues of 960units during the period. However, the physical stock count revealed only285 units remaining. At a cost of $35 per unit, what is the value ofunaccounted inventory?

Explanation of Inventory Audit: An inventory audit is a systematic process of verifying the actual…

Answered: A staff member at Cedar Grove Medical…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 15EB: Tanke Company reported net income on the year-end financial statements of $850,200. However, errors...

See similar textbooks

Similar questions

Value of unaccounted inventory?
sharad
Dineshbhai
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
During the course of the Year 2 audit of Chester Co., the auditor discovered potential cutoff problems that may or may not require adjusting journal entries. For each of the potential cutoff problems indicated below, complete the required journal entries. To prepare each required journal entry: 1. The company shipped merchandise with a carrying amount of $75,000 FOB destination on December 23, Year 2, and recorded the sale and relief of inventory on that date. The customer received the merchandise on December 31, Year 2. The merchandise has a gross profit margin of 10%. Record the necessary Year 2 adjustments, if any. 2. The company shipped merchandise with a carrying amount of $45,000 to a consignee on December 24, Year 2, and recorded the sale and the relief of inventory on that date. The consignee had not sold the merchandise as of January 5, Year 3. The merchandise has a gross profit margin of 10%. Record the necessary Year 2 adjustments, if any. 3. At the beginning of Year 2, the…
Based on its physical count of inventory in its warehouse at year-end, December 31, 2014, Madison Company planned to report inventory of $35,300. During the audit, the independent CPA developed the following additional information: a. Goods from a supplier costing $700 are in transit with UPS on December 31, 2014. The terms are FOB shipping point (explained in the “Required” section). Because these goods had not yet arrived, they were excluded from the physical inventory count. b. Madison delivered samples costing $1,740 to a customer on December 27, 2014, with the understanding that they would be returned to Madison on January 15, 2015. Because these goods were not on hand, they were excluded from the inventory count. c. On December 31, 2014, goods in transit to customers, with terms FOB shipping point, amounted to $6,000 (expected delivery date January 10, 2015). Because the goods had been shipped, they were excluded from the physical inventory count. d. On…
The auditor established the following information relating to the inventory count and product lines of JBU. There was no product movement on the day of the count. The loading dock is part of Warehouse A for the purposes of the count. All product lines within each storage area are on the warehouse maps. The warehouse map is reflective of the warehouse on the day of the count. Inventory values in the perpetual inventory listing are the most recent purchase price. Materiality for year-end audit $8,000 Performance materiality: $5,000 Complete the inventory tasks below by using the information provided in the exhibits: In column B, quantify the required adjustment, if any, to the product line in the perpetual inventory system. Enter increases to the perpetual inventory listing as positive whole dollars. Enter decreases to the perpetual inventory listing as negative whole do If no adjustment to the perpetual inventory listing is required, enter a zero (0).
Tanke Company reported net income on the year-end financial statements of $850,200. However, errors in inventory were discovered after the reports were issued. If inventory was overstated by $21,000, how much net income did the company actually earn?
Jackal Company reported that a flood recently destroyed many of the financial records. The entity used an average cost inventory valuation system. The entity made a physical count at the end of each month in order to determine monthly ending inventory value. By examining various documents, the following data are gathered: Ending inventory at July 31 60,000 units Total cost of units available for sale in July 1,452,100 Cost of goods sold during July 1,164,100 Cost of beginning inventory, July 1 4.00 per unit Gross profit on sales for July 935,900 Day Units Unit Cost Total Cost 5-Jul 55,000 5.10 280,500 11-Jul (53,000) 5.00 265,000 15-Jul 45,000 5.50 247,500 16-Jul 47,000 5.30 249,100 1. What is the number of units on July 1? 2. Refer to Jackal Company. How many…
Reggie Company has just completed a physical inventory count at year-end, December 31, 2020. Only the items on the shelves, in storage, and in the receiving area were counted and costed on a FIFO basis. The inventory amounted to $65,000. During the audit, the auditor developed the following additional information: a. Goods costing $750 were being used by a customer on a trial basis and were excluded from the inventory count at December 31, 2020. b. Goods costing $900 were in transit to Reggie on December 31, 2020, with terms F.O.B. destination (explained below). Because these goods had not arrived, they were excluded from the physical inventory count. c. On December 31, 2020, goods in transit to customers, with terms F.O.B. shipping point, amounted to $1,300 (the expected delivery date was January 10, 2021), Because the goods had been shipped, they were excluded from the physical inventory count. d. On December 28, 2020, a customer purchased goods for $2,650 cash and left them "for…
Firth Company's annual report shows an average inventory balance of $45,000 and cost of goods of $300,000. Total assets amount to $500,000 and liabilities amount to $110,000. Based on this information (treat any partial day as a whole day): Note: Do not round intermediate calculations. the inventory turnover is 3.3. the average number of days to sell inventory is 55. the average number of days to sell inventory is 45. the inventory turnover is 11.
Wildhorse Co. just took its physical inventory on December 31. The count of inventory items on hand at the company’s business locations resulted in a total inventory cost of $289,300. In reviewing the details of the count and related inventory transactions, you have discovered the following items that had not been considered. 1. Wildhorse has sent inventory costing $30,510 on consignment to Richfield Company. All of this inventory was at Richfield’s showrooms on December 31. 2. The company did not include in the count inventory (cost, $18,270) that was sold on December 28, terms FOB shipping point. The goods were in transit on December 31. 3. The company did not include in the count inventory (cost, $12,840) that was purchased with terms of FOB shipping point. The goods were in transit on December 31. Compute the correct December 31 inventory. Correct December 31 inventory $enter a dollar amount

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS