inventory | COGS | |||||
Present balance | 75,000 | 430,000 | ||||
a. | -11,000 | 0 | ||||
b. | -5,500 | 0 | ||||
c. | 8,500 | -16,000 | ||||
d. | -3,250 | 3,250 | ||||
Appropirate balance | 63,750 | 417,250 | ||||
office supplies are not inventory hence excluded | ||||||
Seemore Lens Company (SLC) sells contact lenses FOB destination. For the year ended December 31, the...
Seemore Lens Company (SLC) sells contact lenses FOB destination. For the year ended December 31, the company reported Inventory of $86,000 and Cost of Goods Sold of $452,000. Included in Inventory (and Accounts Payable) are $13,200 of lenses SLC is holding on consignment.Included in SLC’s Inventory balance are $6,600 of office supplies held in SLC’s warehouse.Excluded from SLC’s Inventory balance are $9,600 of lenses in the warehouse, ready to send to customers on January 2. SLC reported these lenses as...
The December 31, 2021, year-end inventory balance of the Raymond Corporation is $212,000. You have been asked to review the following transactions to determine if they have been correctly recorded.Goods shipped to Raymond f.o.b. destination on December 26, 2021, were received on January 2, 2022. The invoice cost of $31,000 is included in the preliminary inventory balance.At year-end, Raymond held $15,000 of merchandise on consignment from the Harrison Company. This merchandise is included in the preliminary inventory balance.On December 29,...
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...
On December 31 of the current year, Plunkett Company reported an ending inventory balance of $211,500. The following additional information is also available: Plunkett sold and shipped goods costing $37,300 to Savannah Enterprises on December 28 with shipping terms of FOB shipping point. The goods were not included in the ending inventory amount of $211,500. Plunkett purchased goods costing $43,300 on December 29. The goods were shipped FOB destination and were received by Plunkett on January 2 of the following...
On December 31 of the current year, Plunkett Company reported an ending inventory balance of $214,000. The following additional information is also available: • Plunkett sold and shipped goods costing $37,800 to Savannah Enterprises on December 28 with shipping terms of FOB shipping point. The goods were not included in the ending Inventory amount of $214,000. • Plunkett purchased goods costing $43,800 on December 29. The goods were shipped FOB destination and were received by Plunkett on January 2 of...
During your audit of Patti Company's ending inventory at December 31, 2017, you find the following inventory accounting errors a. Goods in Patti's warehouse on consignment from Valley, Inc., were included in Patti's ending inventory b. On December 31, 2017, Patti received $4,700 worth of inventory, which was included in the 2017 ending inventory. However, the invoice on this merchandise was not received by Patti until Janua 3, 2018, at which time the purchase was recorded. The purchase should have...
The December 31, 2021, year-end inventory balance of the Raymond Corporation is $216,000. You have been asked to review the following transactions to determine if they have been correctly recorded. Goods shipped to Raymond f.o.b. destination on December 26, 2021, were received on January 2, 2022. The invoice cost of $33,000 is included in the preliminary inventory balance. At year-end, Raymond held $17,000 of merchandise on consignment from the Harrison Company. This merchandise is included in the preliminary inventory balance....
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...
Shamrock, Inc's inventory of $858,000 at December 31, 2017, was based on a physical count of goods priced at cost. The total does not include any adjustments for the following items. Goods shipped from a vendor f.o.b.destination on December 24, 2017, at an invoice cost of $12,000 to Shamrock were received on January 4, 2018. These goods were excluded from the physical count. (b) (a) The physical count excluded goods held by a retailer (Deals Corp.) on consignment for Shamrock,...