At 12/31/20, Tangerine had an inventory balance of $10,000. Upon further investigation, it was determined that this amount included the following: • $700 worth of Banana Co's products currently held on consignment by Tangerine. • $500 of inventory purchased by Tangerine that is in transit (terms: FOB Shipping Point). • $600 of inventory sold by Tangerine that is in transit (terms: FOB Shipping Point). What is the correct total value of inventory for Tangerine Co.? $10,700 $8,200 $8,700 $8,800

At 12/31/20, Tangerine had an inventory balance of $10,000. Upon further investigation, it was determined that this amount included the following: • $700 worth of Banana Co's products currently held on consignment by Tangerine. • $500 of inventory purchased by Tangerine that is in transit (terms: FOB Shipping Point). • $600 of inventory sold by Tangerine that is in transit (terms: FOB Shipping Point). What is the correct total value of inventory for Tangerine Co.? $10,700 $8,200 $8,700 $8,800

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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As a result of a thorough physical inventory, Railway Company determined that it had inventory worth P180,000 at December 31, 2020. This count did not take into consideration the following facts: Rogers Consignment store currently has goods worth P35,000 on its sales floor that belong to Railway but are being sold on consignment by Rogers. The selling price of these goods is P50,000. Railway purchased P13,000 of goods that were shipped on December 27, FOB destination, that will be received by Railway on January 3. How much is the correct amount of inventory to be reported in Railway Company’s statement of financial position? a. P215,000 b.P228,000 c. P230,000 d.P193,000
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Navajo Company's year-end financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Year 1 ending inventory is understated by $66,000 and Year 2 ending inventory is overstated by $36,000. Mc raw Will For Year Ended December 31 (a) Cost of goods sold (b) Net income (c) Total current assets (d) Total equity Required: 1. For each key financial statement figure-(a), (b), (c), and (d) above-prepare a table to show the adjustments necessary to correct the reported amounts. 2. What is the total error in combined net income for the three-year period resulting from the inventory errors? Required 1 Required 2. Complete this question by entering your answers in the tabs below. Cost of goods sold: Reported amount Adjustment for 12/31/Year 1 error Adjustment for 12/31/Year 2 error Corrected amount Year 1 $ 741,000 Year 2 $ 971,000 291,000 1,376,000 284,000 1,263,000 1,403,000 1,596,000 For each key…
Barry company counted and reported the ending inventory on Dec. 31, 2021 at P2,000,000. None of the following items were included when the total amount of the ending inventory was computed: a Goods located in warehouse that are consignment from another entity b Goods sold and shipped FOB destination were in transit on Dec. 31, 2021 and received by customer on Jan. 2, 2022 c Goods sold and shipped FOB shipping point were in transit on Dec. 31, 2021 and received by customer on Jan. 2, 2022 Inventory on December 31, 2021 is?
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