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

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Chapter10: Inventory

Section: Chapter Questions

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

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Wikki Inc. had the following transactions for the current year with respect to its inventory: On January 1, the entity purchased 50,000 units at P100 per unit. During the year, the entity sold 40,000 units at P180 per unit. The entity paid P700,000 for operating expenses. The current replacement cost of the inventory on December 31 is P150 per unit. Required: Based on the result of your audit, determine the following: What is the realized holding gain on inventory for 2010? What is the unrealized holding gain on inventory for 2010? What is the cost of sales to be reported under current cost accounting?
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A company with an accounting date of 31 October carried out a physical check of inventory on 4 November 20X3, leading to an inventory value at cost at this date of $483,700. Between 1 November 20X3 and 4 November 20X3 the following transactions took place: 1 Goods costing $38,400 were received from suppliers. 2 Goods that had cost $14,800 were sold for $20,000. 3 A customer returned, in good condition, some goods which had been sold to him in October for $600 and which had cost $400. 4 The company returned goods that had cost $1,800 in October to the supplier, and received a credit note for them. What figure should appear in the company's financial statements at 31 October 20X3 for closing inventory, based on this information? A $458,700 B $505,900 C $508,700 D $461,500
A company with an accounting date of 31 October carried out a physical check of inventory on 4 November 20X3, leading to an inventory value at cost at this date of $483,700. Between 1 November 20X3 and 4 November 20X3 the following transactions took place: 1 Goods costing $38,400 were received from suppliers. 2 Goods that had cost $14,800 were sold for $20,000. 3 A customer returned, in good condition, some goods which had been sold to him in October for $600 and which had cost $400. 4 The company returned goods that had cost $1,800 in October to the supplier, and received a credit note for them. What figure should appear in the company's financial statements at 31 October 20X3 for closingi inventory based on this information?
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…
Bill's Fine Wines began the fiscal year with inventory value of $85,000 and estimated retail price of $110,000. At the end the second quarter on June 30th, external auditors wanted to estimate the ending inventory in stock without having to do a count of all the inventory in stock. Records also indicate that up to the second quarter of the year, purchases totalled $37,100 with retail price of $55,000. Net sales up to June 30 totalled $95,000. Records show that over the past 4 years, the gross profit percentage has been approximately 44% so they decided to use this to estimate the ending inventory balanc Compute the estimated ending inventory for Bill on June 30, using: a. Gross Profit Percentage b. Retail Inventory Percentage
The estimated inventory balance on December 31 would be
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).
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