ipunys supervisors and managers dur- pany received an order on December 29 that was boxed and was sitting o the ioading dock awaiting pick-up on December 31. The shipper picked up the on January 1 and delivered them on January 6. The shipping terms were FOB ship- g Foint. The goods had a selling price of $40.000 and a cost of $29,000. The goods *ere not included in the count because they were sitting on the doCk. uded in the count was $50,000 of goods that were parts for a machine that the ny no longer made. Given the high-tech nature of Ryder's products, it wa ikely that these obsolete parts had any other use. However, management would Breier to keep them on the books at cost, "since that is what we paid for them, after all." RN tions *repare a schedule to determine the correct inventory amount. Provide explanations to each item above, stating why you did or did not make an adjustment for eacn nem. -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 in transit. (g) Office supplies on hand at January 31. dentify which of the preceding items should be included in inventory. If the iten hould not be included in inventory, state in what account, if any, it should have bee ecorded. Instructions
ipunys supervisors and managers dur- pany received an order on December 29 that was boxed and was sitting o the ioading dock awaiting pick-up on December 31. The shipper picked up the on January 1 and delivered them on January 6. The shipping terms were FOB ship- g Foint. The goods had a selling price of $40.000 and a cost of $29,000. The goods *ere not included in the count because they were sitting on the doCk. uded in the count was $50,000 of goods that were parts for a machine that the ny no longer made. Given the high-tech nature of Ryder's products, it wa ikely that these obsolete parts had any other use. However, management would Breier to keep them on the books at cost, "since that is what we paid for them, after all." RN tions *repare a schedule to determine the correct inventory amount. Provide explanations to each item above, stating why you did or did not make an adjustment for eacn nem. -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 in transit. (g) Office supplies on hand at January 31. dentify which of the preceding items should be included in inventory. If the iten hould not be included in inventory, state in what account, if any, it should have bee ecorded. Instructions
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:ipunys supervisors and managers dur-
pany received an order on December 29 that was boxed and was sitting o
the ioading dock awaiting pick-up on December 31. The shipper picked up the
on January 1 and delivered them on January 6. The shipping terms were FOB ship-
g Foint. The goods had a selling price of $40.000 and a cost of $29,000. The goods
*ere not included in the count because they were sitting on the doCk.
uded in the count was $50,000 of goods that were parts for a machine that the
ny no longer made. Given the high-tech nature of Ryder's products, it wa
ikely that these obsolete parts had any other use. However, management would
Breier to keep them on the books at cost, "since that is what we paid for them, after all."
RN tions
*repare a schedule to determine the correct inventory amount. Provide explanations to
each item above, stating why you did or did not make an adjustment for eacn nem.
-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 in
transit.
(g) Office supplies on hand at January 31.
dentify which of the preceding items should be included in inventory. If the iten
hould not be included in inventory, state in what account, if any, it should have bee
ecorded.
Instructions
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