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James Smith, an auditor with Knapp CPAS, is performing a review of Crane Companys inventory account. Crane did not have a goPrepare a schedule to determine the correct inventory amount. $ Ending inventory-as reported 1 2. 3. 4. 5. 6. $ Correct inven

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Answer #1
Ending inventory-as reported 620000
1 Less: Goods held on consignment from Agler Corporation 180000
2 Add: Purchases shipped FOB shipping point 36000
3 Less: Office supplies stored in the warehouse 20000
4 Add: Goods sitting on the dock 27000
5 Add: Cost of excess goods shipped ($63000 - $7200) 55800
6 Less: Parts for machine no longer made 45000
Correct inventory 493800

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