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Determining Merchandise to Be Included or Excluded from Ending Inventory The unadjusted inventory balance of Ann Corp. is $650,000 on December 31 based on a physical inventory count. The following items must be considered before the inventory valuation is finalized. a. On December 31, the physical inventory excluded $650 of merchandise inventory shipped to Ann Corp. from a vendor fo.b. destination that arrived on January 1 of the following year. b. On December 31, the physical inventory included $23,400 of merchandise inventory held on consignment by a customer. Ann Corp. is the consignor. c. On December 31, the physical inventory included $1,040 of merchandise held on consignment. The consignor is Ann's largest vendor. d. $23,400 of in-transit merchandise was shipped f.o.b. shipping point to a customer and was excluded from the physical inventory count. The merchandise was shipped on December 28 and is expected to arrive at the customer on December 31. e. Goods are in transit from a vendor to Ann on December 31. The invoice cost was $15,600, and the goods were shipped f.o.b. shipping point on December 28. The merchandise was excluded from the physical inventory count because they had not been delivered. f. Merchandise with a cost of $390 is being held in the receiving department for return. The merchandise was excluded from the physical inventory count. Required Review items a through f and determine the adjusted inventory balance for year-end December 31. Adjusted inventory balance on December 31: $ 0

Determining Merchandise to Be Included or Excluded from Ending Inventory The unadjusted inventory balance of Ann Corp. is $650,000 on December 31 based on a physical inventory count. The following items must be considered before the inventory valuation is finalized. a. On December 31, the physical inventory excluded $650 of merchandise inventory shipped to Ann Corp. from a vendor fo.b. destination that arrived on January 1 of the following year. b. On December 31, the physical inventory included $23,400 of merchandise inventory held on consignment by a customer. Ann Corp. is the consignor. c. On December 31, the physical inventory included $1,040 of merchandise held on consignment. The consignor is Ann's largest vendor. d. $23,400 of in-transit merchandise was shipped f.o.b. shipping point to a customer and was excluded from the physical inventory count. The merchandise was shipped on December 28 and is expected to arrive at the customer on December 31. e. Goods are in transit from a vendor to Ann on December 31. The invoice cost was $15,600, and the goods were shipped f.o.b. shipping point on December 28. The merchandise was excluded from the physical inventory count because they had not been delivered. f. Merchandise with a cost of $390 is being held in the receiving department for return. The merchandise was excluded from the physical inventory count. Required Review items a through f and determine the adjusted inventory balance for year-end December 31. Adjusted inventory balance on December 31: $ 0

Financial Accounting
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 7PB: Selected data on merchandise inventory, purchases, and sales for Jaffe Co. and Coronado Co. are as...
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Determining Merchandise to Be Included or Excluded from Ending Inventory The unadjusted inventory balance of Ann Corp. is $650,000 on December 31 based on a physical inventory count. The following items must be considered before the inventory valuation is finalized. a. On December 31, the physical inventory excluded $650 of merchandise inventory shipped to Ann Corp. from a vendor fo.b. destination that arrived on January 1 of the following year. b. On December 31, the physical inventory included $23,400 of merchandise inventory held on consignment by a customer. Ann Corp. is the consignor. c. On December 31, the physical inventory included $1,040 of merchandise held on consignment. The consignor is Ann's largest vendor. d. $23,400 of in-transit merchandise was shipped f.o.b. shipping point to a customer and was excluded from the physical inventory count. The merchandise was shipped on December 28 and is expected to arrive at the customer on December 31. e. Goods are in transit from a vendor to Ann on December 31. The invoice cost was $15,600, and the goods were shipped f.o.b. shipping point on December 28. The merchandise was excluded from the physical inventory count because they had not been delivered. f. Merchandise with a cost of $390 is being held in the receiving department for return. The merchandise was excluded from the physical inventory count. Required Review items a through f and determine the adjusted inventory balance for year-end December 31. Adjusted inventory balance on December 31: $ 0
Transcribed Image Text:Determining Merchandise to Be Included or Excluded from Ending Inventory The unadjusted inventory balance of Ann Corp. is $650,000 on December 31 based on a physical inventory count. The following items must be considered before the inventory valuation is finalized. a. On December 31, the physical inventory excluded $650 of merchandise inventory shipped to Ann Corp. from a vendor fo.b. destination that arrived on January 1 of the following year. b. On December 31, the physical inventory included $23,400 of merchandise inventory held on consignment by a customer. Ann Corp. is the consignor. c. On December 31, the physical inventory included $1,040 of merchandise held on consignment. The consignor is Ann's largest vendor. d. $23,400 of in-transit merchandise was shipped f.o.b. shipping point to a customer and was excluded from the physical inventory count. The merchandise was shipped on December 28 and is expected to arrive at the customer on December 31. e. Goods are in transit from a vendor to Ann on December 31. The invoice cost was $15,600, and the goods were shipped f.o.b. shipping point on December 28. The merchandise was excluded from the physical inventory count because they had not been delivered. f. Merchandise with a cost of $390 is being held in the receiving department for return. The merchandise was excluded from the physical inventory count. Required Review items a through f and determine the adjusted inventory balance for year-end December 31. Adjusted inventory balance on December 31: $ 0
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