Bramble Decor 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. 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 , e.g. -15,000, or parenthesis e.g. (15,000). Enter 0 if there is no effect.) Ending inventory-as reported $enter a dollar amount 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 Company. enter a dollar amount 2. The physical count did not include 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. enter a dollar amount 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. enter a dollar amount 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 FOB shipping point. The goods had a selling price of $40,000 and a cost of $36,000. The goods were not included in the count because they were sitting on the dock. enter a dollar amount 5. On December 29, Bramble shipped goods with a selling price of $70,000 and a cost of $62,000 to Macchia Company FOB shipping point. The goods arrived on January 3. Macchia had only ordered goods with a selling price of $14,000 and a cost of $8,000. However, a sales manager at Bramble had authorized the shipment and said that if Macchia wanted to ship the goods back next week, it could. enter a dollar amount 6. Included in the count was $38,000 of outdated products that were unlikely to be sold. Management determined that they had a net realizable value of $0. enter a dollar amount Correct inventory $enter a total amount

Bramble Decor 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. 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 , e.g. -15,000, or parenthesis e.g. (15,000). Enter 0 if there is no effect.) Ending inventory-as reported $enter a dollar amount 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 Company. enter a dollar amount 2. The physical count did not include 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. enter a dollar amount 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. enter a dollar amount 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 FOB shipping point. The goods had a selling price of $40,000 and a cost of $36,000. The goods were not included in the count because they were sitting on the dock. enter a dollar amount 5. On December 29, Bramble shipped goods with a selling price of $70,000 and a cost of $62,000 to Macchia Company FOB shipping point. The goods arrived on January 3. Macchia had only ordered goods with a selling price of $14,000 and a cost of $8,000. However, a sales manager at Bramble had authorized the shipment and said that if Macchia wanted to ship the goods back next week, it could. enter a dollar amount 6. Included in the count was $38,000 of outdated products that were unlikely to be sold. Management determined that they had a net realizable value of $0. enter a dollar amount Correct inventory $enter a total amount

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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	Ending inventory-as reported	$enter a dollar amount

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 Company.	enter a dollar amount

2.	The physical count did not include 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.	enter a dollar amount

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.	enter a dollar amount

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 FOB shipping point. The goods had a selling price of $40,000 and a cost of $36,000. The goods were not included in the count because they were sitting on the dock.	enter a dollar amount

5.	On December 29, Bramble shipped goods with a selling price of $70,000 and a cost of $62,000 to Macchia Company FOB shipping point. The goods arrived on January 3. Macchia had only ordered goods with a selling price of $14,000 and a cost of $8,000. However, a sales manager at Bramble had authorized the shipment and said that if Macchia wanted to ship the goods back next week, it could.	enter a dollar amount

6.	Included in the count was $38,000 of outdated products that were unlikely to be sold. Management determined that they had a net realizable value of $0.	enter a dollar amount

	Correct inventory	$enter a total amount

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