Identify items in inventory. Instructions Prepare a schedule to determine the correct inventory amount. Provide explanations for each item above, saying why you did or did not make an adjustment for each item. E6.3 (LO 1) 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. Exercises 6-37
Identify items in inventory. Instructions Prepare a schedule to determine the correct inventory amount. Provide explanations for each item above, saying why you did or did not make an adjustment for each item. E6.3 (LO 1) 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. Exercises 6-37
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter6: Inventories
Section: Chapter Questions
Problem 1PB: FIFO perpetual inventory The beginning inventory at Dunne Co. and data on purchases and sales for a...
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Question
E6.3
![Identify items in inventory.
Instructions
Prepare a schedule to determine the correct inventory amount. Provide explanations for each item above,
saying why you did or did not make an adjustment for each item.
E6.3 (LO 1) 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.
Exercises 6-37](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F21d49213-6070-408a-ba0b-39c7fe15aa21%2F15f04638-b3a4-4ac6-afb8-4e82b4b7252a%2Fvdtu4fd_processed.png&w=3840&q=75)
Transcribed Image Text:Identify items in inventory.
Instructions
Prepare a schedule to determine the correct inventory amount. Provide explanations for each item above,
saying why you did or did not make an adjustment for each item.
E6.3 (LO 1) 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.
Exercises 6-37
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