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Required: Determine the cost of the ending inventory that Reddall should report on its December 31 balance sheet.

Required: Determine the cost of the ending inventory that Reddall should report on its December 31 balance sheet.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Valuation of Inventory Reddall Company has a fiscal year that ends on December 31. The inventory on hand at the end of the year is valued at a cost of $94,000. The following items were not included in this inventory: 1. Purchased goods in transit, under terms FOB shipping point, invoice price $4,000, freight costs $250. 2. Goods out on consignment to Marlman Company, sales price $5,600, cost of goods $3,050, shipping costs $300. 3. Goods sold to Grina Co. under terms FOB destination, invoiced for $1,900 (which included $178 freight charges to deliver the goods) and have a cost of $1,260. Goods are in transit. 4. Goods held on consignment by Reddall at a sales price of $2,700 which included sales commission of 20% of sales price. 5. Purchased goods in transit, shipped FOB destination, invoice price $2,100 which included freight charges of $190. Required: Determine the cost of the ending Inventory that Reddall should report on its December 31 balance sheet. 105,872 X
Transcribed Image Text:Valuation of Inventory Reddall Company has a fiscal year that ends on December 31. The inventory on hand at the end of the year is valued at a cost of $94,000. The following items were not included in this inventory: 1. Purchased goods in transit, under terms FOB shipping point, invoice price $4,000, freight costs $250. 2. Goods out on consignment to Marlman Company, sales price $5,600, cost of goods $3,050, shipping costs $300. 3. Goods sold to Grina Co. under terms FOB destination, invoiced for $1,900 (which included $178 freight charges to deliver the goods) and have a cost of $1,260. Goods are in transit. 4. Goods held on consignment by Reddall at a sales price of $2,700 which included sales commission of 20% of sales price. 5. Purchased goods in transit, shipped FOB destination, invoice price $2,100 which included freight charges of $190. Required: Determine the cost of the ending Inventory that Reddall should report on its December 31 balance sheet. 105,872 X
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