60.1K

Verified Solution

Link Copied!

Katie, owner of Plaster Hardware Company, was concerned about her control of inventory. In December 20X7, she installed a computerized perpetual inventory system. In April, her accountant brought her the following information for the first 3 months of 20X8: B (Click the icon to view the data.) Katie had asked her public accounting firm to conduct a physical count of inventory on April 1. The CPAs reported inventory of $135,000. Requirement 1. Compute the ending inventory shown in the books by the new perpetual inventory system. 2. Provide the journal entry to reconcile the book inventory with the physical count. What is the corrected cost of goods sold for the first 3 months of 20X8? 3. Do your calculations point out areas about which Katie should be concerned? Why? Requirement 1. Compute the ending inventory shown in the books by the new perpetual inventory system. First select the formula then calculate the ending inventory. Ending inventory + Katie, owner of Plaster Hardware Company, was concerned about her control of inventory. In December 20X7, she installed a computerized perpetual inventory system. In April, her accountant brought her the following information for the first 3 months of 20X8: B (Click the icon to view the data.) Katie had asked her public accounting firm to conduct a physical count of inventory on April 1. The CPAs reported inventory of $135,000. Requirement 1. Compute the ending inventory shown in the books by the new perpetual inventory system. 2. Provide the journal entry to reconcile the book inventory with the physical count. What is the corrected cost of goods sold for the first 3 months of 20X8? 3. Do your calculations point out areas about which Katie should be concerned? Why? Requirement 1. Compute the ending inventory shown in the books by the new perpetual inventory system. First select the formula then calculate the ending inventory. Ending inventory +

Answer & Explanation Solved by verified expert

See Answer