Gary Kifer, an auditor with Neely CPAs, is performing a review of Dudley Company's inventory account. Dudley did not have a good year, and top management is under pressure to boost reported income. The following information was not considered when determining that amount.
Determine the correct inventory amount by filling in the beginning inventory and adjustments for each item listed below to arrive at corrected inventory.
4.The company received an order on December 29 that was boxed and was 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 $25,000. The goods were not included in the count because they were sitting on the dock. $______________
5.On December 29 Dudley shipped goods with a selling price of $80,000 and a cost of $50,000 to Shawnee Sales Corporation FOB shipping point. The goods arrived on January 3. Shawnee Sales had only ordered goods with a selling price of $10,000 and a cost of $6,000. However, a sales manager at Dudley had authorized the shipment and said that if Shawnee wanted to ship the goods back next week, it could.$________________
Correct inventory$_______
I tried (1500) and 1500, for the first one, they were both wrong.
I tried 54000 and (54000) for the second, and alas they were wrong as well!
Determine the correct inventory amount by filling in the beginning inventory and adjustments for each item listed below to arrive at corrected inventory.
4.The company received an order on December 29 that was boxed and was 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 $25,000. The goods were not included in the count because they were sitting on the dock. $______________
5.On December 29 Dudley shipped goods with a selling price of $80,000 and a cost of $50,000 to Shawnee Sales Corporation FOB shipping point. The goods arrived on January 3. Shawnee Sales had only ordered goods with a selling price of $10,000 and a cost of $6,000. However, a sales manager at Dudley had authorized the shipment and said that if Shawnee wanted to ship the goods back next week, it could.$________________
Correct inventory$_______
I tried (1500) and 1500, for the first one, they were both wrong.
I tried 54000 and (54000) for the second, and alas they were wrong as well!