Question

QUESTION 7 

As a result of a thorough physical inventory, Greeley Company determined that it had inventory worth $325,000 at December 31, 2016. This count did not take into consideration the following facts: Walker Consignment currently has goods worth $47,000 on its sales floor that belong to Greeley but are being sold on consignment by Walker. The selling price of these goods is $75,000. Greeley purchased $22,000 of goods that were shipped on December 27. FOB destination, that will be received by Greeley on January 3. Determine the correct amount of Inventory that Greeley should report. 

• $325,000 

• $347,000

• $372,000 

• $387,000 

QUESTION 8 

Quayle Bookstore had 500 units on hand at January 1, costing $9 each. Purchases and sales during the month of January were as follows: 

Date Purchases 

Jan. 14 17 250 @ $10 

25 250 @ $12 

29 

Quayle does not maintain perpetual inventory records. According to a physical count, 360 units were on hand at January 31. The cost of the inventory at January 31, under the FIFO method is: 

• $3,240

• $3,650

• $4,100 

• $3,820.

Answer 1