Swifty 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 yearend was $ However, the following information was not considered when determining that amount. Prepare a schedule to determine the correct inventory amount. an amount reduces the account balance then enter with a negative sign precedling the number, eg or parenthesss eg Ending inventoryas reported Included in the company's count were goods with a cost of $ that the company is holding on consignment. The goods belong to Kroeger Company.
The physical count did not include goods purchased by Swifty with a cost of $ that
were shipped FOB destination on December and did not arrive at Swifty warehouse
until January
Included in the inventory account was $ 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.
The company received an order on December that was boxed and sitting on the loading
dock awaiting pickup on December The shipper picked up the goods on January and
delivered them on January The shipping terms were FOB shipping point. The goods had a
selling price of $ and a cost of $ The goods were not included in the count
because they were sitting on the dock.
On December Swifty shipped goods with a selling price of $ and a cost of
$ to Macchia Company FOB shipping point. The goods arrived on January
Macchia had only ordered goods with a selling price of $ and a cost of $
However, a sales manager at Swifty had authorized the shipment and said that if Macchia
wanted to ship the goods back next week, it could.
Included in the count was $ of outdated products that were unlikely to be sold.
Management determined that they had a net realizable value of $
