Pettis needs to determine its year-end inventory. The warehouse contains 27,000 units, of which 3,700 were damaged by flood and cannot be sold. Another 2,700 units were purchased and shipped to FOB destination, and are in transit. The company also consigns goods and has 4,700 units at a consignee's location. How many units should Pettis include in its year-end inventory? A. 34,400 B. 25,300 C. 30,700 D. 38,100 E. 28,000

Pettis needs to determine its year-end inventory. The warehouse contains 27,000 units, of which 3,700 were damaged by flood and cannot be sold. Another 2,700 units were purchased and shipped to FOB destination, and are in transit. The company also consigns goods and has 4,700 units at a consignee's location. How many units should Pettis include in its year-end inventory? A. 34,400 B. 25,300 C. 30,700 D. 38,100 E. 28,000

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 7MC: Questions M7-6 and M7-7 are based on the following data: City Stationers Inc. had 200 calculators on...

See similar textbooks

Similar questions

Quiz Sandoval needs to determine its year-end inventory. The warehouse contains 22,000 units, of which 3,200 were damaged by flood and are not sellable. Another 2,200 units were purchased from Markor Company, FOB shipping point, and are currently in transit. The company also consigns goods and has 4,200 units at a consignee's location. How many units should Sandoval include in its year-end inventory? Multiple Choice 23,000 31,600 20,800 25,200 28,400
Please help me
Coronado Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes and condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31. 2020. Jim Alcide, controller for Coronado, has gathered the following data concerning inventory. At May 31. 2020, the balance in Coronado's Raw Materials Inventory account was $501,840, and Aliowance to Reduce Inventory to Market had a credit balance of $29,360. Alcide summarized the relevant inventory cost and market data at May 31, 2020, in the schedule below. Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Coronado's May 31, 2020, financial statements for inventory at lower-of-cost-or-market as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle. Assume Garcia uses LIFO inventory costing.…
How much should the ending inventory have been?
Vaughn Manufacturing took a physical inventory on December 31 and determined that goods costing $216,000 were on hand. Not included in the physical count were $30,000 of goods purchased from Tamarisk, Inc., FOB, shipping point, and $21,500 of goods sold to Sheffield Corp. for $32,000, FOB destination. Both the Tamarisk purchase and the Sheffield sale were in transit at year-end.What amount should Vaughn report as its December 31 inventory? Ending Inventory $enter Ending Inventory in dollars
Jackal Company reported that a flood recently destroyed many of the financial records. The entity used an average cost inventory valuation system. The entity made a physical count at the end of each month in order to determine monthly ending inventory value. By examining various documents, the following data are gathered: Ending inventory at July 31 60,000 units Total cost of units available for sale in July 1,452,100 Cost of goods sold during July 1,164,100 Cost of beginning inventory, July 1 4.00 per unit Gross profit on sales for July 935,900 Day Units Unit Cost Total Cost 5-Jul 55,000 5.10 280,500 11-Jul (53,000) 5.00 265,000 15-Jul 45,000 5.50 247,500 16-Jul 47,000 5.30 249,100 1. What is the number of units on July 1? 2. Refer to Jackal Company. How many…
Sheridan Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes and condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2025. Jim Alcide, controller for Sheridan, has gathered the following data concerning inventory. At May 31, 2025, the balance in Sheridan's Raw Materials Inventory account was $493,680. Alcide summarized the relevant inventory cost and market data at May 31, 2025, in the schedule below. Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Sheridan's May 31, 2025, financial statements for inventory under the lower-of-cost-or-market rule as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle. Consider the following expanded data at May 31, 2025. Assume Sheridan uses LIFO inventory costing. Cost…
some are incorrect. i will appreciate if you help me fix it
A flood recently destroyed many of the financial records of Rizal Company. The company uses an average cost inventory valuation system. Rizal makes a physical count at the end of each month to determine monthly ending inventory value. By examining various documents, the following data are gathered: Ending inventory at July 31 - 60,000 units; Total cost of units available for sale in July - ₱1,452,100; Cost of goods sold during July - ₱1,164,100; Cost of inventory, July 1 - ₱ 4.00 per unit; Gross profit on sales for July - ₱ 935,900. Purchases during July are: July 5 - 55,000 units @₱5.10/unit; July 11 - 53,000 units @₱5.00/unit; July 15 - 45,000 @₱5.50/unit; July 16 - 47,000 units @₱5.30/unit. How many units are there as of July 1? Referring to the question above, how many units were sold during the month of July? Refer to the information above, What is the cost of the inventory on July 31?
Garcia Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes and condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2020. Jim Alcide, controller for Garcia, has gathered the following data concerning inventory. At May 31, 2020, the balance in Garcia’s Raw Materials Inventory account was $408,000, and Allowance to Reduce Inventory to NRV had a credit balance of $27,500. Alcide summarized the relevant inventory cost and market data at May 31, 2020, in the schedule below. Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Garcia’s May 31, 2020, financial statements for inventory under the LCNRV rule as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle. Cost Sales Price Net RealizableValue Aluminum…
What is the Correct December 31 inventory amount ?? Bramble Company just took its physical inventory. The count of inventory items on hand at the company’s business locations resulted in a total inventory cost of $280,000. In reviewing the details of the count and related inventory transactions, you have discovered the following. 1. Bramble has sent inventory costing $26,000 on consignment to Alissa Company. All of this inventory was at Alissa’s showrooms on December 31. 2. The company did not include in the count inventory (cost, $20,000) that was sold on December 28, terms FOB shipping point. The goods were in transit on December 31. 3. The company did not include in the count inventory (cost, $12,000) that was purchased with terms of FOB shipping point. The goods were in transit on December 31. Compute the correct December 31 inventory.
Zonkey Enterprises uses LIFO with a periodic inventory system to keep track of its inventory. It began the year with 100 units that cost $10 each. It made the following purchases: January 7, 100 for $12 each; January 22, 100 for $13 each. During the month it sold 120 units. How much ending inventory should be reported on the balance sheet, COGS on the January income statement, and cost of goods available for sale during the month? How is ending inventory being calculated?