Ending Inventory (physical count on dec 31, current year) | $ 65,700.00 | ||
a. | Goods out on trial to customer | $ 870.00 | Samples held by a customer on trial are still owned by the vendor; no sale or transfer of ownership has occurred. |
b. | Goods in transit from supplier | 0 | Goods shipped by supplier, F.O.B. destination are owned by supplier until delivery at destination. |
c. | Goods in transit to customer | 0 | Goods shipped to customers, F.O.B. shipping point, are owned by the customer because ownership passed when they were delivered to the transportation company. The inventory correctly excluded these items |
d. | Goods held for customer pickup | -1710 | |
e. | Goods purchased and in transit | 4350 | |
f. | Goods sold and in transit | 1650 | |
g. | Goods held on consignment (5 x 860) | -4300 | |
Correct inventory, December 31 current year | $ 66,560.00 |
Travis Company has just completed a physical Inventory count at year-end, December 31 or the current...
Travis Company has just completed a physical Inventory count at year-end, December 31 of the current year. Only the items on the shelves, in storage, and in the receiving area were counted and costed on a FIFO basis. The inventory amounted to $65,700. During the audit, the independent CPA developed the following additional Information a Goods costing $870 were being used by a customer on a trial basis and were excluded from the inventory count at December 31 of the...
Travis Company has just completed a physical inventory count at year-end, December 31 of the current year. Only the items on the shelves, in storage, and in the receiving area were counted and costed on a FIFO basis. The inventory amounted to $67,000. During the audit, the independent CPA developed the following additional information: a. Goods costing $950 were being used by a customer on a trial basis and were excluded from the inventory count at December 31 of the...
P7-1 (Algo) Analyzing Items to Be Included in Inventory L07-1 Travis Company has just completed a physical inventory count at year-end, December 31 of the current year. Only the items on the shelves, in storage, and in the receiving area were counted and costed on a FIFO basis. The inventory amounted to $67,000. During the audit, the independent CPA developed the following additional information: a. Goods costing $810 were being used by a customer on a trial basis and were...
E7-1 LO7-1 Analyzing Items to Be Included in Inventory Based on its physical count of inventory in its warehouse at yearend, December 31 of the current year, Plummer Company planned to report inventory of $34,000. During the audit, the independent CPA devel oped the following additional information: a. Goods from a supplier costing $700 are in transit with UPS on December 31 of the current year. The terms are FOB shipping point (explained in the Required" section). Because these goods...
Peete Company identifies the following items for possible inclusion in the physical inventory. Indicate whether each item should be included or excluded from the inventory taking. (a) 900 units of inventory shipped on consignment by Peete to another company. (b) 3,000 units of inventory in transit from a supplier shipped FOB destination. (c) 1,200 units of inventory sold but being held for customer pickup. (d) 500 units of inventory held on consignment from another company. We were unable to transcribe...
The unadjusted inventory balance of Sara Ann Corp. is $450,000 on December 31, 2020, based on a physical inventory count. The following items must be considered before the inventory valuation is finalized. a. On December 31, the physical inventory excluded $450 of merchandise inventory shipped to Sara Ann Corp. from a vendor f.o.b. shipping point that arrived on January 1, 2021. b. On December 31, the physical inventory excluded $16,200 of merchandise inventory held on consignment by a customer. Sara...
Marigold Corp. just took its physical inventory on December 31. The count of inventory items on hand at the company’s business locations resulted in a total inventory cost of $305,400. In reviewing the details of the count and related inventory transactions, you have discovered the following items that had not been considered. 1. Marigold Corp. has sent inventory costing $28,320 on consignment to Richfield Company. All of this inventory was at Richfield’s showrooms on December 31. 2. The company did...
A retailer completed a physical count of ending merchandise inventory. When counting inventory, employees did not include $3,000 of incoming goods shipped by a supplier on December 31 under FOB shipping point. These goods had been recorded in Merchandise Inventory, but they were not included in the physical count because they were in transit. This means shrinkage was incorrectly overstated by $3,000. Indicate whether the failure to include in-transit inventory as part of the physical count results in an overstatement,...
Indicate whether the following merchandise in transit should be included or excluded from the company's inventory at year end, December 31. 1. $2,000 of merchandise purchased from a supplier, shipped FOB shipping point on December 29, in transit at year-end. 2. $1,000 of merchandise shipped to a customer on December 30, FOB destination. The goods arrived at the customer's location on January 5.
Windsor Company took a physical inventory on December 31 and determined that goods costing $189,800 were on hand. Not included in the physical count were $26,130 of goods purchased from Pelzer Corporation, f.o.b. shipping point, and $23,420 of goods sold to Alvarez Company for $30,660, f.o.b. destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Windsor report as its December 31 inventory? December 31 inventory $ Exercise 8-2 In your audit of...