Fig Company's inventory at December 31, 2021 was P570,000 based on a physical count of goods priced at cost and before any necessary year-end adjustments relating to the following: • Included in the physical count were goods billed to a customer FOB shipping point on December 31, 2021. These goods had a cost of P15,000 and were picked up by the carrier only on January 10, 2022. • Goods shipped FOB shipping point on December 28, 2021 from a vendor to Fig Company were received on January 4, 2022. The invoice cost was P25,000. • Goods shipped from Fig Company to a customer, terms FOB destination, are still in transit at December 31, 2021. The goods, with a selling price of P120,500, were received by the customer on January 5, 2022. The company sells goods at a 25% markup on cost. What amount should Fig Company report as inventory in its December 31, 2021 statement of financial position? *

Fig Company's inventory at December 31, 2021 was P570,000 based on a physical count of goods priced at cost and before any necessary year-end adjustments relating to the following: • Included in the physical count were goods billed to a customer FOB shipping point on December 31, 2021. These goods had a cost of P15,000 and were picked up by the carrier only on January 10, 2022. • Goods shipped FOB shipping point on December 28, 2021 from a vendor to Fig Company were received on January 4, 2022. The invoice cost was P25,000. • Goods shipped from Fig Company to a customer, terms FOB destination, are still in transit at December 31, 2021. The goods, with a selling price of P120,500, were received by the customer on January 5, 2022. The company sells goods at a 25% markup on cost. What amount should Fig Company report as inventory in its December 31, 2021 statement of financial position? *

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

At December 31, 2025, suppose that Whispering Company's inventory records indicated a balance of $620000. Upon further investigation it was determined that this amount included the following: ▪ $127000 in inventory purchases made by Whispering shipped from the seller on December 27, 2025 terms FOB destination, but not due to be received until January 2, 2026 $70000 in goods sold by Whispering with terms FOB destination on December 27, 2025. The goods are not expected to reach their destination until January 6, 2026 $7000 of goods received on consignment from Sandra Company ■ What is Whispering's correct ending inventory balance at December 31, 2025? $493000 $486000 O $416000 O $613000 Save for Later Attempts: 0 of 1 used Submit Answer
Yellow Corporation sold selected merchandise on a consignment basis during 2020. Yellow's accounting records show the following information: Inventory, January 1 = 244, 000 Inventory on hand, December 31 = 290,000 Inventory out on consignment, December 31 = 40,000 Purchases = 1,080,000 Freight-in = 20,000 Freight-out to customers = 70,000 Freight-out to consignees = 10,000 What amount should YELLOW report as cost of goods sold in its 2020 income statement? a. 1,014,000 b. 1,354,000 c. 1,024,000 d. 1,094,000
Lumen INC. is preparing its 2020 year-end financial statements. Prior to any adjustments, inventory is valued at P76,050, based on a physical count. The following information has been found relating to certain inventory transactions. 1. P3 ,500 shipments of goods to a customer on December 31, terms FOB destination, was not included in the year-end inventory. The goods cost P2,600 and were delivered to the customer on January 8, 2021. The sale was properly recorded in 2021. Which of the following statements is true? a. There is no effect on the 2020 ending inventory. b. The 2020 ending inventory is overstated. c. The 2020 ending inventory is understated.
Lumen INC. is preparing its 2020 year-end financial statements. Prior to any adjustments, inventory is valued at P76,050, based on a physical count. The following information has been found relating to certain inventory transactions.2. Goods costing P2,700 were received from a vendor on January 5, 2021. The related invoice was received and recorded on January 5, 2021. The goods were shipped on December 31, 2020, terms FOB shipping point. Which of the following statements is true?a. There is no effect on the ending inventory.b. There is no effect on the net income.c. The 2020 ending inventory is overstated.d. The 2020 net income is overstated. Include an explanation.
On December 31, 2019, Ana Inc. sold merchandise for P750,000 to Ysa Inc. The terms of the sales were net 30, FOB shipping point. The merchandise was shipped on December 31, 2019, and arrived at Ysa Inc. on January 5, 2020. Due to a clerical error, the sale was not recorded until January 2020 and the merchandise sold at a 25% markup on cost was included in inventory on December 31, 2019. What was the net effect of the errors on retained earnings? A no effect B understated by 1,350,000 C) understated by 150,000 overstated by 150,000
Lol Company’s inventory account balance on December 31, 2019 was 360,000 and 30,000 of those goods were purchased FOBshipping point and still in transit as of December 31, 2019. Purchases in 2020 were 3,000,000. The perpetual inventory records showedan ending inventory of 420,000 for 2020. A physical count of the goods on hand at the end of 2020 showed an inventory of 380,000.What amount should the company report as cost of goods sold in its 2020 statement of comprehensive income? _______________
PROBLEM: Based on its general ledger/records, Alfonso Co. reported inventory of P356,400 at the end of 2021. The following items were included in the inventory total: P31,500 worth of goods shipped by "Free Along Side" on December 31, 2021, and received by Alfonso Co. on January 5, 2022. а. Goods worth P12,400 ordered from a supplier on December 26, 2021, were shipped on December 28 "Cost, Insurance, and Freight" but had not arrived by December 31. b. P14,800 worth of goods ordered on December 25, 2021, were shipped to Alfonso Co. FOB "Ex-ship" on December 28, 2021, and received on January 2, С. 2022. d. A client ordered P21,600 worth of goods on December 27, 2021, which were dispatched FOB Seller on December 29, 2021, and received by the customer on January 5, 2022. On December 29, 2021, goods worth P12,500 were shipped FOB Buyer to a client. The goods are still on their way, and the customer anticipates receiving them on January 6, 2022. е. What is the correct inventory amount to…
During 2021, a company sells 356 units of inventory for $93 each. The company has the following inventory purchase transactions for 2021: Number of Units 61 Unit Cost Total Cost $61 63 Date Transaction Jan. 1 Beginning inventory May 5 Purchase Nov. 3 Purchase $ 3,721 10,269 12,078 $26,068 163 183 66 407 Calculate ending inventory and cost of goods sold for 2021 assuming the company uses LIFO. Ending inventory Cost of goods sold
Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2024, the records indicate the following data: Beginning inventory Purchases Freight-in on purchases Purchase returns Net markups Net markdowns Net sales ($ in 000s) Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Cost $ 60 533 26 1 $ $ Retail $ 100 935 1 Required: Assuming the price level increased from 1.00 at January 1 to 1.80 at December 31, 2024, use the dollar-value LIFO retail method to approximate cost of ending inventory and cost of goods sold. Note: Round your intermediate and final answers to the nearest whole dollar. Enter your answers in thousands. +372 X Answer is complete but not entirely correct. ($ in 000s) 209 X 130 X 650 X 812 Screenshot
A company's inventory on December 31, 2024, was $247,000 based on a physical count priced at cost, and before any necessary adjustment for the following: Inventory costing $ 12,000, shipped f.o. b. shipping point from a vendor on December 30, 2024, was received on January 5, 2025. Inventory costing $14, 000, shipped f.o. b. destination from a vendor on December 28, 2024, was received on January 3, 2025. Inventory costing $70,000 was shipped to a customer f.o. b. destination on December 28, arrived at the customer's location on January 6, 2025. Inventory costing $54,000 was being held on consignment by another company. What amount should the company report as inventory in its December 31, 2024, balance sheet? Please explain your answer in detail of why you included or excluded?
Maroon Company’s inventory at December 31, 2021 amounts to P555,000 based on physical count of goods priced at cost and before any year-end adjustments relating to the following:a. Goods with a selling price of P30,000 were in transit to a customer as of December 31, 2021. Terms 2/10, 2/30, FOB shipping point. The freight cost of P1,400 was prepaid by Maroon. These goods cost P24,000.b. Goods shipped FOB shipping point on December 28,2021 from a supplier to Maroon Company were received on January 5, 2022. The invoice amount is P 25,000.c. Goods shipped from Maroon to Pink , a customer, terms FOB destination, are still in transit at December 31, 2021. The goods with a selling price of P120,500, were received by Pink on January 3, 2022 The company sells goods at a mark up of 25% of cost.d. Goods purchased FOB destination were in transit at December 31,2021. The goods with invoice price of P16,500 were received on January 7, 2022. What amount should Maroon report as inventory in…