E6-3 Gato Inc. had the following inventory situations to consider at January 31, its year-end.(a) Goods held on consignment for Steele Corp. since December 12.b) Goods shipped on consignment to Logan Holdings Inc. on January 5.(c) Goods shipped to a customer, FOB destination, on January 29 that are still in transit.(d) Goods shipped to a customer, FOB shipping point, on January 29 that are still in transit.(e) Goods purchased FOB destination from a supplier on January 25 that are still in transit.(f) Goods purchased FOB shipping point from a supplier on January 25 that are still intransit.(g) Office supplies on hand at January 31.000 at Augusbago Incdust29, 2017.InstructionsIdentify which of the preceding items should be included in inventory. If the itemshould not be included in inventory, state in what account, if any, it should have beenrecorded.9ivin rbizno i teriT bas ins lemU

FOB shipping point: Under FOB shipping point the possession of goods are with the seller until the…

Answered: E6-3 Gato Inc. had the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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E7-5 (Algo) Calculating Ending Inventory and Cost of Goods Sold Under FIFO, LIFO, and Average Cost LO7-2 Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Inventory, December 31, prior year For the current year: Purchase, March 21 Purchase, August 1 Inventory, December 31, current year Required: Units Unit Cost 1,810 $ 4 5,180 6 2,880 4,140 7 Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods. Note: Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount. FIFO LIFO Average Cost Ending inventory $ 27,720 $ 24,550 Cost of goods sold $ 33,979
7. The following information belongs to Nizwa Trading company. Inventory balance on January 1, 2019: RO 600,000 Purchases made during the year 2019: RO 1,200,000 Inventory balance on December 31, 2019: RO 500,000, Transportation in OMR 250, Purchase Return OMR 750 Required: Compute cost of goods sold for the year 2019 assuming the company uses a periodic inventory system.
[The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for its only product. For specific identification, ending inventory consists of 270 units from the January 30 purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory. Date January 1 January 10 January 20 January 25 January 30 Assume the perpetual inventory system is used. Required: Activities Beginning inventory Sales Purchase Sales Purchase Totals Specific Identification Purchase Date January 1 January 20 January 30 Complete this question by entering your answers in the tabs below. FIFO Activity Units Acquired at Cost 180 units @ $10.50 = LIFO Available for Sale Beginning inventory Purchase Purchase 110 units 270 units @ 560 units # of units 1. Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification. 2. Determine the cost assigned to ending inventory…
On August 31, 2010, Harvey Co. decided to change from the FIFO periodic inventory system to the weightedaverage periodic inventory system. Harvey is on a calendar year basis. The cumulative effect of the change is determineda. As of January 1, 2010.b. As of August 31, 2010. c. During the eight months ending August 31, 2010, by a weighted-average of the purchases.d. During 2010 by a weighted-average of the purchases.
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…
The records for the Flagstaff Company showed the following for the one item they sell during the year ended December 31, 2022: Date of Transactions Units Unit Costs Inventory 1/1 40 $20 Purchase 3/5 120 $24 Sale 5/15 80 Purchase 7/11 40 $22 Sale 9/24 30 Purchase 10/23 50 $26 Sale 11/5 40 Required: Assuming a periodic inventory system compute the cost of goods sold during the year and the ending inventory in dollars under each of the following inventory costing methods (show computations and round to the nearest cents): 1) Weighted-average cost (Average cost method the book calls it) 2) First-in, First-out (FIFO) 3) Last-in, First-out (LIFO)
SPD Company ("SPD") asks you to review its inventory values at 31 December 2021, and prepare the necessary adjustments to the books. The following information is given to you. (1) SPD uses the periodic method of recording inventory. A physical count reveals $78,819 of inventory on hand at 31 December 2021. (2) Not included in the physical count of inventory is $11,690 of merchandise purchased on 13 December from MILL. This merchandise was shipped f.a.b shipping point on 22 December and arived in January. The invoice arrived and was recorded on 31 December. (3) Included in inventory is merchandise sold to DES on 17 December, f.o.b destination. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale on account for $13,298 on 31 December. The merchandise cost $10,210, and DES received it on 4 January. (4) Included in inventory was merchandise received from BCC on 31 December with an invoice price of S16,625. The merchandise was shipped f.o.b.…
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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?
E6.3 (LO 1), AN Gato Inc. had the following inventory situations to consider at January 31, its year-end. a. Goods held on consignment for Steele Corp. since December 12. b. Goods shipped on consignment to Logan Holdings Inc. on January 5. c. Goods shipped to a customer, FOB destination, on January 29 that are still in transit. d. Goods shipped to a customer, FOB shipping point, on January 29 that are still in transit. e. Goods purchased FOB destination from a supplier on January 25 that are still in transit. f. Goods purchased FOB shipping point from a supplier on January 25 that are still in transit. g. Office supplies on hand at January 31. Instructions Identify which of the preceding items should be included in inventory. If the item should not be included in inventory, state in what account, if any, it should have been recorded. Identify items in inventory.
Seiz Company used perpetual inventory system to record inventory transactions for 2021. Inventory P 1,900,000 Sales 6,500,000 Sales returns 150,000 Cost of goods sold 4,600,000 Inventory losses 120,000 On December 24, the entity recorded a P 150,000 credit sales of goods costing P 100,000. These goods were sold on FOB destination point terms and were in transit on December 31. The goods were included in the physical count. The inventory on December 31 determined by physical count has a cost of P 2,000,000 and a net realizable value of P 1,700,000. Any inventory writedown is not yet recorded. What amount should be reported as Cost of Goods Sold for 2020? a. 5,020,000 b. 4,500,000 c. 4,720,000 d. 4,920,000
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…

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