INC during Dece
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic Video
Question
1. Goods purchased of INVTY INC during December totaled
2. How many units were sold by INVTY INC during December?
3. How many units should be included in INVTY, INC's inventory at December 31, 2021?

Transcribed Image Text:The management of INVTY, INC. has engaged you to assist in the preparation of year-end (December 31) financial statements. You
are told that on November 30, the correct inventory level was 145,730 units. During the month of December, sales totaled 138,630
units including 40,000 units shipped on consignment to AA Corp. A letter received from AA indicates that as of December 31, it has
sold 15,200 units and was still trying to sell the remainder.
A review of the December purchase orders to various suppliers shows the following:
Purchase Order Date
Date Shipped
Invoice Date
01/02/2022
Quantity in Units
Date Received
Terms
12/31/2021
4,200
01/02/2022
01/05/2022
FOB Destination
12/05/2021
01/02/2022
3,600
12/17/2021
12/22/2021
FOB Destination
01/07/2022
01/02/2022
12/06/2021
01/03/2022
7,900
01/05/2022
FOB Shipping point
| 12/29/2021
12/18/2021
12/22/2021
12/20/2021
8,000
FOB Shipping point
01/05/2022
01/07/2022
01/06/2022
01/07/2022
4,600
01/04/2022
FOB Destination
12/27/2021
3,500
01/05/2022
FOB Destination
INVTY, INC. uses the "passing of legal title" for inventory recognition.
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