22. The inventory account of Irick Company at December 31, 2010, included the following items:Inventory Amount:Merchandise out on consignment at sales price(including markup of 40% on selling price) $15,000Goods purchased, in transit (shipped f.o.b. shipping point) 12,000Goods held on consignment by Irick 13,000Goods out on approval (sales price $7,600, cost $6,400) 7,600Based on the above information, the inventory account at December 31, 2010, should be reduced bya. $20,200.b. $22,600.c. $32,200.d. $32,000.
22. The inventory account of Irick Company at December 31, 2010, included the following items:Inventory Amount:Merchandise out on consignment at sales price(including markup of 40% on selling price) $15,000Goods purchased, in transit (shipped f.o.b. shipping point) 12,000Goods held on consignment by Irick 13,000Goods out on approval (sales price $7,600, cost $6,400) 7,600Based on the above information, the inventory account at December 31, 2010, should be reduced bya. $20,200.b. $22,600.c. $32,200.d. $32,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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22. The inventory account of Irick Company at December 31, 2010, included the following items:
Inventory Amount:
Merchandise out on consignment at sales price
(including markup of 40% on selling price) $15,000
Goods purchased, in transit (shipped f.o.b. shipping point) 12,000
Goods held on consignment by Irick 13,000
Goods out on approval (sales price $7,600, cost $6,400) 7,600
Based on the above information, the inventory account at December 31, 2010, should be reduced by
a. $20,200.
b. $22,600.
c. $32,200.
d. $32,000.
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