Question

Current Attempt in Progress Kevin Hallan auditor with Krupo CPA is performing a review of Brable Company s tory court Bredd not have good year to m According to its records, the inventory balance a year and was $623.000 However, the following formation was not considered when e ntiunder pressure to boost reported income that amount 1 included in the company's count were goods with a cost of $213.000 that the company is holding on convent the goods belong to Aer Corporation 2 The physical count did not include goods purchased by Bramble with a cost of $41.200 that were do i ng it on December 28 and notwear 's warehouse 3 Included in the inventory account was $21.000 of the supplies that were stored in the warehouse and were to be used by the company's superiors and more during the compar 4 The company received an order on December 29 that was bewed and was sitting on the loading dock ingick on December 31. The where the good on January and del e on January 6. The shipping terms were FOB shipping point. The goods had a sing orice of $41.200 and a cost of $30.900. The goods were not included in the count because they were sitting on the dock 5 On December 29. Bramble shiped goods with a selling price of $98.100 and a cost of $76.300 to Central Sales Corporation Foshing on the goods ved on anary Centre only ordered goods with a selling price of $9.100 and a cost of 57.230. However, a les manager trambe had to the comentadthote wanted to ship the pooch bak i t could. 6 Included in the count was 553.000 of goods that were parts for a machine that the company no longer made in the techture of Brables products it was that these che parts had any other use. However, management would prefer to keep them on the books at cost since that is what we paid for the Prepare a schedule to determine the correct inventory amount. Ending Inventorvas reported

Answer 1

Bramble Company
	Inventory	623000
a)	Will Not be included as Novak is consignee, he is not the owner of those goods.	-213000
b)	These goods will be included as they are shipped FOB shipping so these goods are deemed to be in possession as on 28 Dec. irrespective of physical possession.	41200
c)	Will not be included as they are office supplies and not inventory	-21000
d)	Will be included as they are not shipped till now and are in possession Of Novak.	30900
e)	Will not be included as this is the real sale amount.,	-7280
f)	Will not be included as they are no longer saleable. Should be classifed as scrap.	-53000
	Correct Inventory	400820