question archive View Policies Current Attempt in Progress Kale Wilson, an auditor with Sneed Chartered Accountants, is performing a review of Crane Company's inventory account
View Policies Current Attempt in Progress Kale Wilson, an auditor with Sneed Chartered Accountants, is performing a review of Crane Company's inventory account
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View Policies Current Attempt in Progress Kale Wilson, an auditor with Sneed Chartered Accountants, is performing a review of Crane Company's inventory account. Crane 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 £725,000. 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, eg.-15,000, or parenthesis eg. (15,000).) Ending inventory-as reported £ 1. Included in the company's count were goods with a cost of £225,000 that the company is holding on consignment. The goods belong to Superior, Ltd. 2. The physical count did not include goods purchased by Crane with a cost of £35,000 that were shipped FOB destination on December 28 and did not arrive at Crane's warehouse until January 3. | 3. Included in the inventory account was £15,000 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.
