Revolution Hardware reported $475,000 of inventory on December 31, 2020, based on a physical count.Additional information is as follows:Included in the 2020 physical count were machines billed to a customer FOB shipping point on December 31. These machines had a cost of $12,000 and had been billed at $30,000. The shipment was on Revolution's loading dock waiting to be picked up by the carrier.Goods were in transit from a vendor to Revolution. The invoice cost was $85,000 and the goods were shipped FOB shipping point on December 29, 2020.Work in process inventory (not included in the physical count) costing $7,850 was sent to an outside processor for finishing on December 30, 2020.Goods out on consignment amounted to $26,500 (sales price) with shipping costs of $590 (not included in sales price). Markup is 15% on cost.Required:Compute the correct amount of December 31, 2020, ending inventory for Revolution Hardware. Round your intermediate calculation to nearest dollar.

Name: Revolution Hardware reported $475,000 of inventory on December 31, 202
Uploaded: 2024-03-20T06:32:37.000Z
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Description: Revolution Hardware reported $475,000 of inventory on December 31, 2020, based on a physical count.Additional information is as follows:Included in the 2020 physical count were machines billed to a customer FOB shipping point on December 31. These ma

Goods out of consignment=Sale price×100100+Markup+Shipping cost=$26,500×100100+15+$590=$23,633Ending inventory=Inventory on physical count+Invoice cost of goods in transit+WIP+Consignment=$475,000+$85,000+$7,850+$23,633=$591,483

Answered: Revolution Hardware reported $475,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Revolution Hardware reported $475,000 of inventory on December 31, 2020, based on a physical count.

Additional information is as follows:

Included in the 2020 physical count were machines billed to a customer FOB shipping point on December 31. These machines had a cost of $12,000 and had been billed at $30,000. The shipment was on Revolution's loading dock waiting to be picked up by the carrier.
Goods were in transit from a vendor to Revolution. The invoice cost was $85,000 and the goods were shipped FOB shipping point on December 29, 2020.
Work in process inventory (not included in the physical count) costing $7,850 was sent to an outside processor for finishing on December 30, 2020.
Goods out on consignment amounted to $26,500 (sales price) with shipping costs of $590 (not included in sales price). Markup is 15% on cost.

Required:
Compute the correct amount of December 31, 2020, ending inventory for Revolution Hardware. Round your intermediate calculation to nearest dollar.

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