Question

The Kwok Company's inventory balance on December 31, 2021. was $165.000 (based on a 12/31/2021 physical count) before considering the following transactions: 1. Goods shipped to Kwok to b. destination on December 20, 2021, were received on January 4, 2022. The invoice cost was $30,000. 2. Goods shipped to Kwok fob, shipping point on December 28, 2021, were received on January 5, 2022. The invoice cost was $17,000 3. Goods shipped from Kwok to a customer f.o.b. destination on December 27, 2021, were received by the customer on January 3, 2022. The sales price was $40,000 and the merchandise cost $22,000. 4. Goods shipped from Kwok to a customer fo.b. destination on December 26, 2021, were received by the customer on December 30, 2021. The sales price was $20,000 and the merchandise cost $13.000. 5. Goods shipped from Kwok to a customer fo.b, shipping point on December 28, 2021 were received by the customer on January 4. 2022. The sales price was $25,000 and the merchandise cost $12,000. Required: Determine the correct inventory amount to be reported in Kwok's 2021 balance sheet. Correct inventory balance

Answer 1

Compute the correct Inventory Balance : Particulars Inventory Balance Add : Goods Shipped to Kwok FOB Shipping Point on Dec 28 Add : Goods Shipped to Customer FOB Destination on Dec 27 Correct Inventory Balance Amount $ 165,000 $ 17,000 $ 22,000 $ 204,000 Note : Do Comment For Any Further Assistance