Current Attempt in Progress Sheridan 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 $731,000. 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 $241,000 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 Sheridan with a cost of $38,000 that were shipped FOB destination on December 28 and did not arrive at Sheridan warehouse until January 3. enter a dollar amount 3. Included in the inventory account was $7,000 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 $42,000 and a cost of $29,000. The goods were not included in the count because they were sitting on the dock. enter a dollar amount 5. On December 29, Sheridan shipped goods with a selling price of $87,000 and a cost of $69,000 to Macchia Company FOB shipping point. The goods arrived on January 3. Macchia had only ordered goods with a selling price of $10,000 and a cost of $8,000. However, a sales manager at Sheridan 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 Included in the count was $35,000 of outdated products that were unlikely to be sold.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
Current Attempt in Progress Sheridan 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 $731,000. 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 $241,000 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 Sheridan with a cost of $38,000 that were shipped FOB destination on December 28 and did not arrive at Sheridan warehouse until January 3. enter a dollar amount 3. Included in the inventory account was $7,000 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 $42,000 and a cost of $29,000. The goods were not included in the count because they were sitting on the dock. enter a dollar amount 5. On December 29, Sheridan shipped goods with a selling price of $87,000 and a cost of $69,000 to Macchia Company FOB shipping point. The goods arrived on January 3. Macchia had only ordered goods with a selling price of $10,000 and a cost of $8,000. However, a sales manager at Sheridan 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 $35,000 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
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter5: Inventories And Cost Of Goods Sold
Section: Chapter Questions
Problem 5.4AP
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Current Attempt in Progress
Sheridan 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 $731,000. 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.)
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 $241,000 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 Sheridan with a cost of $38,000 that were shipped FOB destination on December 28 and did not arrive at Sheridan warehouse until January 3.
|
enter a dollar amount
|
||
3. |
Included in the inventory account was $7,000 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 $42,000 and a cost of $29,000. The goods were not included in the count because they were sitting on the dock.
|
enter a dollar amount
|
||
5. |
On December 29, Sheridan shipped goods with a selling price of $87,000 and a cost of $69,000 to Macchia Company FOB shipping point. The goods arrived on January 3. Macchia had only ordered goods with a selling price of $10,000 and a cost of $8,000. However, a sales manager at Sheridan 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 $35,000 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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