Question

ALLONIN 9th.pdf (page 479 of 1,409) 585 Purchases (gross) Purchase discounts Purchase returns Freight-in 18 Required: Determine the missing numbers. Show computations where appropriate. ansit The Kwok Company's inventory balance on December 31, 2018, was $165,000 (based on a 12/31/2018 physical count) before considering the following transactions: 1. Goods shipped to Kwok f.o.b. destination on December 20, 2018, were received on January 4, 2019. The invoice cost was $30,000. 2. Goods shipped to Kwok f.o.b. shipping point on December 28, 2018, were received on January 5, 2019. The invoice cost was $17,000. 3. Goods shipped from Kwok to a customer f.o.b. destination on December 27, 2018, were received by the cus- tomer on January 3, 2019. The sales price was $40,000 and the merchandise cost $22,000. 4. Goods shipped from Kwok to a customer f.o.b. destination on December 26, 2018, were received by the cus tomer on December 30, 2018. The sales price was $20,000 and the merchandise cost $13,000. 5. Goods shipped from Kwok to a customer f.o.b. shipping point on December 28, 2018, were received by the customer on January 4, 2019. The sales price was $25,000 and the merchandise cost $12,000. Required: Determine the correct inventory amount to be reported in Kwok's 2018 balance sheet. SSV AYOS

Answer 1

Cancelation of be Reported Inventory Balance on to in k wort's 2018 - 165odo Inventor Balance on 31 dec 2018 (Base on Physical count) Add: Goods Shipped on 20/12/2016 Goods Shipped on 28/12/2016 less Croods sent to customer on 27/12/2018 at cost less Goods Shipped on to customes on 26/12/2018 less Goods shipped on 28/12/10 ener 30,00B 17000 (W2000) (13000) (12000) T65000 Correct clasing Inventory