Solution 1:
Correct ending inventory on 31.12.2018 = Inventory reported - Inventory in transit under FOB destination - Goods on consignment
= $1,128,000 - $168,000 - $9,000 = $951,000
Hence option A is correct.
Solution 2:
Average cost per unit = Cost of goods available for sale/ Units available for sale = $3,970 /700 = $5.67143 per unit
Cost of ending inventory = 250 * $5.67143 = $1,418
Hence option A is correct.
5. At December 31, 2018 (Year End), LSJ Company's inventory records indicated a balance of S1,128,000....
At December 31, 2017 Vaughn Manufacturing's inventory records indicated a balance of $877000. Upon further investigation it was determined that this amount included the following: $170000 in inventory purchases made by Vaughn shipped from the seller 12/27/17 terms FOB destination, but not due to be received until January 2nd • $111000 in goods sold by Vaughn with terms FOB destination on December 27th. The goods are not expected to reach their destination until rse January 6th • $7500 of goods...
At December 31, 2022, Kingbird, Inc. inventory records indicated a balance of $625000. Upon further investigation it was determined that this amount included the following: ▪ $120000 in inventory purchases made by Kingbird shipped from the seller 12/27/22 terms FOB destination, but not due to be received until January 2nd ▪ $86000 in goods sold by Kingbird with terms FOB destination on December 27. The goods are not expected to reach their destination until January 6. ▪ $5200 of goods...
Capwell Corporation uses a periodic inventory system. The company's ending inventory on December 31, 2018, its fiscal-year end, based on a physical count, was determined to be $341,000. Capwell's unadjusted trial balance also showed the following account balances Purchases, $770,000, Accounts payable, $285,000, Accounts receivable. $300,000. Sales revenue, $950,000 The internal audit department discovered the following items 1. Goods valued at $47,000 held on consignment from Dix Company were included in the physical count but not recorded as a purchase....
BACK NE CALCULATOR PRINTER VERSION FULL SCREEN Multiple Choice Question 61 At December 31, 2017 Windsor, Inc. inventory records indicated a balance of $870000. Upon further investigation it was determined that this amount included the following: • $179000 in inventory purchases made by Windsor shipped from the seller 12/27/17 terms FOB destination, but not due to be received until January 2nd . $125000 in goods sold by Windsor with terms FOB destination on December 27th. The goods are not expected...
wa Capwell Corporation uses a periodic ventory system. The company's ending wiventory on December 31, 2018, s fecal year end based on a physical count, was determined to be $346.000 Capwell's unachusted trial balance also showed the following account balances: Purchases, 5820,000, Accounts payable, $310.000. Accounts receivable, $325,000, Sales revenue, $1.000.000 The internal audit department discovered the following items 1 Goods valued at $52.000 held on consignment from Dex Company were included in the physical count but not recorded as...
Capwell Corporation uses a periodic inventory system. The company's ending inventory on December 31, 2018, Its fiscal-year end, based on a physical count, was determined to be $341,000. Capwell's unadjusted trial balance also showed the following account balances Purchases, $770,000, Accounts payable; $285,000; Accounts receivable, $300,000, Sales revenue, $950,000 The internal audit department discovered the following items 1. Goods valued at $47,000 held on consignment from Dix Company were included in the physical count but not recorded as a purchase....
The Kwok Company’s inventory balance on December 31, 2018, was $255,000 (based on a 12/31/18 physical count) before considering the following transactions: Goods shipped to Kwok f.o.b. destination on December 20, 2018, were received on January 4, 2019. The invoice cost was $48,000. Goods shipped to Kwok f.o.b. shipping point on December 28, 2018, were received on January 5, 2019. The invoice cost was $35,000. Goods shipped from Kwok to a customer f.o.b. destination on December 27, 2018, were received...
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...
The December 31, 2018, inventory of Tog Company, based on a physical count, was determined to be $460,000. Included in that count was a shipment of goods received from a supplier at the end of the month that cost $60,000. The purchase was recorded and paid for in 2019. Another supplier shipment costing $25,000 was correctly recorded as a purchase in 2018. However, the merchandise, shipped FOB shipping point, was not received until 2019 and was incorrectly omitted from the...