On December 31, 2021, Titanium Inc. had recorded $175,000 in its inventory account. The controller found the following invoices that had not been entered on January 3, 2022: Sold goods costing $7,500 to Silver Co. for $12,000, terms FOB shipping point. The goods were shipped on December 29, and delivered to Silver on January 2, 2022. Sold goods costing $9,000 to Platinum Ltd. for $18,000 on account. The goods were delivered on December 20, 2021, and payment is due January 15, 2022. Purchased goods costing $6,500 on December 21,2021. The shipping terms are FOB destination. The inventory was shipped on December 28, 2021, and received January 3, 2022. What amount should Titanium record as its ending inventory on December 31, 2021? Question 7 options: $145,000 $165,000 $198,000 $158,500
On December 31, 2021, Titanium Inc. had recorded $175,000 in its inventory account. The controller found the following invoices that had not been entered on January 3, 2022: Sold goods costing $7,500 to Silver Co. for $12,000, terms FOB shipping point. The goods were shipped on December 29, and delivered to Silver on January 2, 2022. Sold goods costing $9,000 to Platinum Ltd. for $18,000 on account. The goods were delivered on December 20, 2021, and payment is due January 15, 2022. Purchased goods costing $6,500 on December 21,2021. The shipping terms are FOB destination. The inventory was shipped on December 28, 2021, and received January 3, 2022. What amount should Titanium record as its ending inventory on December 31, 2021? Question 7 options: $145,000 $165,000 $198,000 $158,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On December 31, 2021, Titanium Inc. had recorded $175,000 in its inventory account. The controller found the following invoices that had not been entered on January 3, 2022:
- Sold goods costing $7,500 to Silver Co. for $12,000, terms FOB shipping point. The goods were shipped on December 29, and delivered to Silver on January 2, 2022.
- Sold goods costing $9,000 to Platinum Ltd. for $18,000 on account. The goods were delivered on December 20, 2021, and payment is due January 15, 2022.
- Purchased goods costing $6,500 on December 21,2021. The shipping terms are FOB destination. The inventory was shipped on December 28, 2021, and received January 3, 2022.
What amount should Titanium record as its ending inventory on December 31, 2021?
Question 7 options:
|
|
$145,000 |
|
|
$165,000 |
|
|
$198,000 |
|
|
$158,500 |
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