**Shamrock, Inc. Inventory Analysis**Shamrock, Inc.'s inventory reported at $869,000 as of December 31, 2017, was determined from a physical count of goods valued at cost. The following items were not accounted for in the inventory count:1. **Goods in Transit (FOB Destination)** - Goods shipped by a vendor on December 24, 2017, at an invoice cost of $6,000, were received by Shamrock on January 4, 2018. These items were excluded from the physical count.2. **Consignment Inventory** - The physical count did not include goods held by Deals Corp. on consignment for Shamrock, Inc. These goods valued at $40,000 did not indicate a sale had occurred upon shipping.3. **Goods Shipped to Customers (FOB Shipping Point)** - Inventory listed included $46,600 of goods that were in Shamrock's warehouse on the morning of December 31, 2017, but were shipped to customers later that day. They had already been recorded in the physical inventory count.**Question:**What inventory total should be listed on Shamrock’s balance sheet for December 31, 2017?**Inventory to be reported:** $ ____________

Here in this question, we are required to determine how much inventory should be reported in the…

Answered: Shamrock, Inc's inventory of $ 869,000…

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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The balance of inventory account as of December 31 of the current year of Mark Company amounted to P480,000. The replacement cost of the raw materials is P450,000. Assume that the finished products in which raw materials will be incorporated are expected to be sold at or above cost, a.compute for the loss on inventory writedown. b.Refer to given above but assume instead that the finished products in which raw materials will be incorporated are expected to be sold at lower than cost. Compute for loss on inventory writedown. Your answer
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Larkspur, Inc's inventory of $859,000 at December 31, 2017, was based on a physical count of goods priced at cost. The total does not include any adjustments for the following items. (a) Goods shipped from a vendor f.o.b. destination on December 24, 2017, at an invoice cost of $7,000 to Larkspur were received on January 4, 2018. These goods were excluded from the physical count. (b) The physical count excluded goods held by a retailer (Deals Corp.) on consignment for Larkspur, Inc. The cost of these goods to Larkspur was $ 32,500. Larkspur did not record a sale when it shipped the goods to Deals. (c) The inventory included $ 48,000 of goods that were in Larkspur's warehouse on the morning of December 31, 2017 but were shipped to a customer fo.b. shipping point later that day, after they had been included in the physical inventory count. What inventory amount should appear on Larkspur's December 31, 2017 balance sheet? Inventory to be reported $ eTextbook and Media
The following information is presented for Marigold Corporation. The net income figures were computed without knowledge of the errors in ending inventory. Assume that there was no error in the 2016 ending inventory. Year Net Incomeper Books Error in EndingInventory 2017 $ 180,000 Overstated $ 23,000 2018 93,000 Overstated 35,000 2019 108,000 No error - 2020 218,000 Understated 6,200 2021 97,000 Understated 19,500 Prepare a worksheet to show the adjusted net income figure for each year from 2017 to 2021 after taking into account the inventory
Ayayai Hardware Limited reported the following amounts for its cost of goods sold and Inventory: Cost of goods sold Ending inventory 2018 Ending inventory $169,200 Cost of goods sold 37,400 2017 Ayayai made two errors: (1) ending inventory for 2018 was overstated by $2,000 and (2) ending inventory for 2017 was understated by $4,100. Assume that neither error has been found or corrected. $152,900 Calculate the correct ending inventory and cost of goods sold amounts for each year. $ 29,400 2018 tA $ LA 2017

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