At the end of the current period, a company checks its physical inventory against its records and discovers the following..1,700 units (products) were in the warehouse.. 23 of the 1,700 units in the warehouse were destroyed when a storage shelf collapsed.. 180 units were loaded in a trailer. The units are to be delivered to a customer, terms FOB destination.• 140 units were out on consignment to a retailer.Determine the number of units in the company's period-end inventory.Units in Ending InventoryUnits of Product in warehouse:Add:Less:Total units in period-end inventory1,700 unitsunits

Inventory at the end of financial year to be shown in balance sheet, should means the inventory, the…

Answered: At the end of the current period, a…

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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For numbers 10-12: Layla Company reported that a flood recently destroyed many of the financial records. The entity used an average cost of inventory valuation. The entity made a physical count at the end of each month in order to determine monthly ending inventory value. By examining various documents, the following data are gathered: Ending inventory at July 31 6,000 units Total cost of units available for sale in July 1,452,100 Cost of goods sold during July 1,164,100 Cost of beginning inventory, July 1 4.00 per unit Gross profit on sales for July 935,900 Units Unit cost Total cost July 5 55,000 5.10 280,500 11 53,000 5.00 265,000 15 45,000 5.50 247,500 16 47,000 5.30 249,100 Total purchases 200,000 1,042,100 10. What is the number of units on July 1? a. 102,500 c. 76,500 b. 140,000 d. 60,000 11. How many units were sold during the month of July? a. 140,000 c. 302,500 b. 242,500…
On October 1, 20x1, the warehouse of ABC Co. and all the inventories contained therein were damaged by flood. Off-site back up of data base shows the following information: Inventory, Jan. 1 10,000 Accounts payable, Jan. 1 3,000 Accounts payable, Sept. 30 2,000 Payments to suppliers 50,000 Freight-in 500 Purchase returns 500 Sales from Jan. to Sept. 80,000 Sales returns 5,000 Sales discounts 2,000 Gross profit rate based on sales 30% Additional information: Goods in…
Bonita Industries took a physical inventory on December 31 and determined that goods costing $210,000 were on hand. Not included in the physical count were $24,000 of goods purchased from Metlock, Inc., FOB, shipping point, and $24,500 of goods sold to Whispering Winds Corp. for $34,000, FOB destination. Both the Metlock purchase and the Whispering Winds sale were in transit at year-end.What amount should Bonita report as its December 31 inventory? Ending Inventory $enter the Ending Inventory in dollars
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On November 21, 2021, a fire at Hodge Company’s warehouse caused severe damage to its entire inventory of Product Tex. Hodge estimates that all usable damaged goods can be sold for $12,000. The following information was available from the records of Hodge’s periodic inventory system: Inventory, November 1 $ 100,000 Net purchases from November 1, to the date of the fire 140,000 Net sales from November 1, to the date of the fire 220,000 Based on recent history, Hodge’s gross profit ratio on Product Tex is 35% of net sales. Required:Calculate the estimated loss on the inventory from the fire, using the gross profit method.
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BCD Company conducted a physical count on December 31, 2019 which showed inventory with a total cost of P4,000,000However, further investigation revealed that the following items were excluded from the count: Goods sold to a customer which are being heldfor the customer to call at the customer'sconvenience 220,000 A packing case containing a product standing inthe shipping room was not included in thephysical count because it was marked "hold forshipping instructions" 610,000 Goods in process held by an outside processorfor further processing 250,000 A special machine, fabricated to order for acustomer, was finished and specificallysegregated at the back part of the shippingroom on December 31, 2019. The customer was 220,000billed on that date and the machine wasexcluded from inventory although it wasshipped on January 2, 2020. 220,000 Goods shipped to the entity FOB destination onDecember 26, 2019 were received on January2, 2020. The invoice cost is included in…
In connection with your examination of the financial statements of Camry Products Co, a limited liability company, for the year ended 31 March 20X9, you are reviewing the plans for a physical inventory count at the company's warehouse on 31 March 20X9. The company assembles domestic appliances, and inventory of finished appliances, unassembled parts and sundry inventory are stored in the warehouse which is adjacent to the company's assembly plant. The plant will continue to produce goods during the inventory count until 5pm on 31 March 20X9. On 30 March 20X9, the warehouse staff will deliver the estimated quantities of unassembled parts and sundry inventory which will be required for production for 31 March 20X9; however, emergency requisitions by the factory will be filled on 31 March. During the inventory count, the warehouse staff will continue to receive parts and sundry inventory, and to dispatch finished appliances. Appliances which are completed on 31 March 20X9 will remain in…
You are reviewing the inventories of Sheep-Ahoy Company and found the following items: In the shipping room was a product costing P 264,000 marked "Hold for shipping instruction". This item was not included in the count although the purchased order of the customer was received on December 10, 2022. Actual shipment and billing happened on January 2, 2023. On December 28, goods costing P 232,960 were shipped to Holy Cow Company. The invoice accompanying the goods with selling price of P 300,000 was marked "on consignment". These goods were excluded from the inventory at year end. The company received merchandise costing P 92,500 on January 3, 2023. The invoice was received and recorded on January 4, 2023 with FOB shipping point ter. Shipment was made on December 31. The goods were included in the year-end inventory although these were not yet received when the physical count was taken. A customized product of a VIP customer was completed and in the shipping room at year-end. Actual…
Concord Company just took its physical inventory. The count of inventory items on hand at the company’s business locations resulted in a total inventory cost of $260,000. In reviewing the details of the count and related inventory transactions, you have discovered the following items had not been considered. 1. Concord has sent inventory costing $21,000 on consignment to Alissa Company. All of this inventory was at Alissa’s showrooms on December 31. 2. The company did not include in the count inventory (cost, $20,000) that was sold on December 28, terms FOB shipping point. The goods were in transit on December 31. 3. The company did not include in the count inventory (cost, $13,000) that was purchased with terms of FOB shipping point. The goods were in transit on December 31. Compute the correct December 31 inventory. Correct December 31 inventory
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