The December 31, 2024, inventory of Tog Company, based on a physical count, was determined count was a shipment of goods received from a supplier at the end of the month that cost $60,000. The purchase was recorded a paid for in 2025. Another supplier shipment costing $25,000 was correctly recorded as a purchase in 2024. However, the merchandise, shipped FOB shipping point, was not received until 2025 and was incorrectly omitted from the physical count. A thire purchase, shipped from a supplier FOB shipping point on December 28, 2024, did not arrive until January 3, 2025. The merchandi which cost $90,000, was not included in the physical count and the purchase has not yet been recorded. The company uses a periodic inventory system. Required:

The December 31, 2024, inventory of Tog Company, based on a physical count, was determined count was a shipment of goods received from a supplier at the end of the month that cost $60,000. The purchase was recorded a paid for in 2025. Another supplier shipment costing $25,000 was correctly recorded as a purchase in 2024. However, the merchandise, shipped FOB shipping point, was not received until 2025 and was incorrectly omitted from the physical count. A thire purchase, shipped from a supplier FOB shipping point on December 28, 2024, did not arrive until January 3, 2025. The merchandi which cost $90,000, was not included in the physical count and the purchase has not yet been recorded. The company uses a periodic inventory system. Required:

Name: Required 1 Required 2.Determine the correct December 31, 2024, invent
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Description: Required 1 Required 2.Determine the correct December 31, 2024, inventory balance and, assuming that the errors were discovered after the 2024financial statements were issued, analyze the effect of the errors on 2024 cost of goods sold, net income, a

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 records for the Flagstaff Company showed the following for the one item they sell during the year ended December 31, 2022: Date of Transactions Units Unit Costs Inventory 1/1 40 $20 Purchase 3/5 120 $24 Sale 5/15 80 Purchase 7/11 40 $22 Sale 9/24 30 Purchase 10/23 50 $26 Sale 11/5 40 Required: Assuming a periodic inventory system compute the cost of goods sold during the year and the ending inventory in dollars under each of the following inventory costing methods (show computations and round to the nearest cents): 1) Weighted-average cost (Average cost method the book calls it) 2) First-in, First-out (FIFO) 3) Last-in, First-out (LIFO)
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