3. Shipping Terms and Inventoriable Cost. Super Sale Club reported inventory of P36,400 at December 31, 2020, end of its fiscal year. You discovered that the inventory amount included the following: • Merchandise costing P3,700 ordered on December 22, 2020; shipped to the company FOB destination and arrived on January 2, 2021. • Merchandise costing P4,800 held on consignment. • Merchandise costing P6,200 ordered from a supplier on December 26, 2020; shipped FOB shipping point on December 28 but had not arrived by December 31. • Merchandise costing P5,900 ordered by a customer on December 27, 2019; shipped FOB destination on December 29, 2020 for arrival at the customer's warehouse on January 5, 2021. Compute the correct amount of inventory to be reported in Super Sale's December 31, 2020 statement of financial position.

3. Shipping Terms and Inventoriable Cost. Super Sale Club reported inventory of P36,400 at December 31, 2020, end of its fiscal year. You discovered that the inventory amount included the following: • Merchandise costing P3,700 ordered on December 22, 2020; shipped to the company FOB destination and arrived on January 2, 2021. • Merchandise costing P4,800 held on consignment. • Merchandise costing P6,200 ordered from a supplier on December 26, 2020; shipped FOB shipping point on December 28 but had not arrived by December 31. • Merchandise costing P5,900 ordered by a customer on December 27, 2019; shipped FOB destination on December 29, 2020 for arrival at the customer's warehouse on January 5, 2021. Compute the correct amount of inventory to be reported in Super Sale's December 31, 2020 statement of financial position.

Name: 3. Shipping Terms and Inventoriable Cost. Super Sale Club reported in
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: 3. Shipping Terms and Inventoriable Cost. Super Sale Club reported inventoryof P36,400 at December 31, 2020, end of its fiscal year. You discovered that theinventory amount included the following:• Merchandise costing P3,700 ordered on December 22,

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 5PA: Dymac Appliances uses the periodic inventory system. Details regarding the inventory of appliances...

See similar textbooks

Similar questions

Beginning inventory, purchases, and sales for Item Zebra 9x are as follows: Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on April 27 and (b) the inventory on April 30.
Beginning inventory, purchases, and sales for Item Foxtrot are as follows: Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on March 27 and (b) the inventory on March 31.
Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the October 22 purchase, (b) the cost of the merchandise sold on October 29, and (c) the inventory on October 31.
Beginning inventory, purchases, and sales for Item Gidget are as follows: Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on September 27 and (b) the inventory on September 30.
Goods in Transit Gravais Company made two purchases on December 29, 2019. One purchase for 3,000 was shipped FOB destination, and the second for 4,000 was shipped FOB shipping point. Neither purchase had been received nor paid for on December 31, 2019. Required: Which of these purchases, if either, does Gravais include in inventory on December 31, 2019? What is the cost?
Beginning inventory, purchases, and sales for 30xT are as follows: Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the May 23 purchase, (b) the cost of the merchandise sold on May 26, and (c) the inventory on May 31.
The moving average inventory cost flow assumption is applicable to which of the following inventory systems? Questions M7-6 and M7-7 are based on the following data: City Stationers Inc. had 200 calculators on hand on January 1, 2019, costing 18 each. Purchases and sales of calculators during the month of January were as follows: City uses a periodic inventory system. According to a physical count, 150 calculators were on hand at January 31, 2019.
At December 31, 2019, the following information was available from Crisford Companys books: Sales for the year totaled 110,600; markdowns amounted to 1,400. Under the approximate lower of average cost or market retail method, Crisfords inventory at December 31, 2019, was: a. 30,800 b. 28.000 c. 21,560 d. 19,600
Beginning inventory, purchases, and sales for Item Widget are as follows: Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on March 25 and (b) the inventory on March 31.
On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as follows: Instructions 1. Does Wyman Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 2019. The merchandise inventory as of December 31, 2019, was 305,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was 30,000. 3. Prepare the closing entries for Wyman Company as of December 31, 2019. 4. What would the net income have been if the perpetual inventory system had been used?
Calculate the cost of goods sold dollar value for B74 Company for the sale on November 20, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).
On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as follows: Instructions 1. Does Simkins Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 2019. The merchandise inventory as of June 30, 2019, was 508,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was 33,000. 3. Prepare the closing entries for Simkins Company as of June 30, 2019. 4. What would the net income have been if the perpetual inventory system had been used?