On December 30, year 1, Jennifer Garner Corp. sold merchandise for $75,000 to Alias Co. The terms of the sale were net 30, FOB shipping point. The merchandise was shipped on December 31, Year 1, and arrived at Alias on January 5, Year 2. Due to an error, the sale was not recorded until January of Year 2 and the merchandise, sold at a 25% markup, was included in Jennifer Garner’s inventory at December 31, Year 1. As a result, Jennifer Garner’s COGS for Year 1 was: Understated by $75,000 Understated by $60,000 Understated by $15,000 Correctly Stated

On December 30, year 1, Jennifer Garner Corp. sold merchandise for $75,000 to Alias Co. The terms of the sale were net 30, FOB shipping point. The merchandise was shipped on December 31, Year 1, and arrived at Alias on January 5, Year 2. Due to an error, the sale was not recorded until January of Year 2 and the merchandise, sold at a 25% markup, was included in Jennifer Garner’s inventory at December 31, Year 1. As a result, Jennifer Garner’s COGS for Year 1 was: Understated by $75,000 Understated by $60,000 Understated by $15,000 Correctly Stated

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 11RE: Jessie Stores uses the periodic system of calculating inventory. The following information is...

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Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.
Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of 250,000. During the year, it made 613,000 of net purchases. At the end of the year, a physical inventory showed it had ending inventory of 140,000. Calculate Reid Companys cost of goods sold for the year.
Jessie Stores uses the periodic system of calculating inventory. The following information is available for December of the current year when Jessie sold 500 units of inventory. Using the FIFO method, calculate Jessies inventory on December 31 and its cost of goods sold for December. RE7-11 Using the information from RE7-10, calculate Jessie Storess inventory on December 31 and its cost of goods sold for December using the LIFO method.
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