Value of unaccounted inventory? 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 Beginning BalanceThe beginning balance refers to the quantity of inventory that is…

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...

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The client recorded 100 Dell desktop computers in the inventory account on 30 June 2021. Each costs $2800. The auditor performed a physical count on 6 July 2021 and found 80 units in the warehouse. Which of the following follow-up procedures is not directly relevant for auditors to verify the existence of inventory at the financial year-end? Auditors enquire various warehouse staff about inventory disposals between 1 July and 6 July. The auditor takes a sample of sales invoices and matches them to shipping documents. For the missing inventory items without legitimate explanation, the auditor recommends the client adjust for the amount overstated. The auditor could obtain an inventory movement register from the client warehouse manager to see if the client sold this model between 1 July and 6 July. Auditors enquire the warehouse manager about inventory disposals between 1 July and 6 July.
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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 closingi inventory based on this information?
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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…
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