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1. On December 31, 20X1, Shroff Inc. conducted a physical count of inventory on its premises. The inventory was valued at $714,555. The following information is also available relating to inventory: On December 31, 20X1, Shroff had possession of $17,525 in inventory on consignment from a supplier, Datatech Inc. i. ii. On January 2, 20X2, Shroff received inventory from a supplier with the terms FOB Shipping Point. The inventory has a cost of $6,540 and was shipped on December 29, 20X1. iii. Shroff shipped inventory to a customer on December 30, 20X1. The inventory had a cost of $12,520 and was received by the customer on January 5, 20X2. The goods were shipped FOB Shipping Point. iv. Eisley Equipment is holding inventory on consignment from Shroff. That inventory has a cost of

1. On December 31, 20X1, Shroff Inc. conducted a physical count of inventory on its premises. The inventory was valued at $714,555. The following information is also available relating to inventory: On December 31, 20X1, Shroff had possession of $17,525 in inventory on consignment from a supplier, Datatech Inc. i. ii. On January 2, 20X2, Shroff received inventory from a supplier with the terms FOB Shipping Point. The inventory has a cost of $6,540 and was shipped on December 29, 20X1. iii. Shroff shipped inventory to a customer on December 30, 20X1. The inventory had a cost of $12,520 and was received by the customer on January 5, 20X2. The goods were shipped FOB Shipping Point. iv. Eisley Equipment is holding inventory on consignment from Shroff. That inventory has a cost of

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. On December 31, 20X1, Shroff Inc. conducted a physical count of inventory on its premises. The inventory was valued at $714,555. The following information is also available relating to inventory: On December 31, 20X1, Shroff had possession of $17,525 in inventory on consignment from a supplier, Datatech Inc. ii. On January 2, 20X2, Shroff received inventory from a supplier with the terms FOB Shipping Point. The inventory has a cost of $6,540 and was shipped on December 29, 20X1. iii. Shroff shipped inventory to a customer on December 30, 20X1. The inventory had a cost of $12,520 and was received by the customer on January 5, 20X2. The goods were shipped FOB Shipping Point. iv. Eisley Equipment is holding inventory on consignment from Shroff. That inventory has a cost of $18,400. Determine the correct amount at which Shroff should report its inventory as of December 31, 20X1.
Transcribed Image Text:1. On December 31, 20X1, Shroff Inc. conducted a physical count of inventory on its premises. The inventory was valued at $714,555. The following information is also available relating to inventory: On December 31, 20X1, Shroff had possession of $17,525 in inventory on consignment from a supplier, Datatech Inc. ii. On January 2, 20X2, Shroff received inventory from a supplier with the terms FOB Shipping Point. The inventory has a cost of $6,540 and was shipped on December 29, 20X1. iii. Shroff shipped inventory to a customer on December 30, 20X1. The inventory had a cost of $12,520 and was received by the customer on January 5, 20X2. The goods were shipped FOB Shipping Point. iv. Eisley Equipment is holding inventory on consignment from Shroff. That inventory has a cost of $18,400. Determine the correct amount at which Shroff should report its inventory as of December 31, 20X1.
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