**Question:**The Jones Company completed its inventory count and arrived at a total inventory value of $216,000. It included in its inventory goods held on consignment for Spring Company, costing $23,000. Is their total inventory value correct?- ○ True- ○ False**Explanation:**In accounting, goods held on consignment should not be included in the inventory count of the company holding the goods. These goods are still owned by the consignor (in this case, Spring Company), and hence should not be included in the inventory of the consignee (Jones Company). Therefore, Jones Company should deduct the $23,000 of consignment goods from the total inventory value.To determine if the reported inventory value is correct, subtract the consignment goods from the total:Total reported inventory value: $216,000 Consignment goods value: $23,000 Correct inventory value = $216,000 - $23,000 = $193,000Since the correct inventory value is $193,000 and not $216,000, the answer to the question is:- ○ False

Name: **Question:**The Jones Company completed its inventory count and arri
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: **Question:**The Jones Company completed its inventory count and arrived at a total inventory value of $216,000. It included in its inventory goods held on consignment for Spring Company, costing $23,000. Is their total inventory value correct?- ○ T

solution concept goods sold on consignment basis There are two parties involved in…

Business

Accounting

The Jones Company completed its inventory count and arrived at a total inventory value of $216,000. It included in its inventory goods held on consignment for Spring Company, costing $23,000. Is their total inventory value correct? O True O False

The Jones Company completed its inventory count and arrived at a total inventory value of $216,000. It included in its inventory goods held on consignment for Spring Company, costing $23,000. Is their total inventory value correct? O True O False

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

am.111.
The inventory records of Sixto Corp at Dec 31, 20X1 show a balance of P260,000. Also the following data. 1. Good costing P10,000 purchased FOB shipping point were not yet recorded because the goods is still in transit. Goods were shipped by the seller on Dec 29 and prepaid the freight of P1,000. 2. Goods costing P16,000 were shipped to customer on Dec 31. Term was FOB shipping point. The goods were still included in the ledger at Dec 31. 3. Goods received on Dec 30 costing P5,000 were recorded in Jan 5, 20X2. 4. Goods costing P20,000 were shipped to a customer on Dec 31. Term was FOB destination. Goods were not included in the ledger. 5. Obsolete goods with no resale value amounting to P4,000 were still included in the ledgers. How much is the correct inventory?
S At the end of the year, Randy's Parts Company had the following items in inventory: Item P1 Quantity 60 P2 40 P3 80 P4 70 Required Unit Cost Unit Market Value $ 85 70 130 125 $ 90 72 a. Determine the amount of ending inventory using the lower-of-cost-or-market rule applied to each individual inventory item. b. Provide the adjustment necessary to write down the inventory based on Requirement a. Assume that Randy's Parts Co. uses the perpetual inventory system. c. Determine the amount of ending inventory, assuming that the lower-of-cost-or-market rule is applied to the total inventory in aggregate. 120 130 d. Provide the adjustment necessary to write down the inventory based on Requirement c. Assume that Randy's Parts Co. uses the perpetual inventory system. Required A Required B Required C Ending inventory Complete this question by entering your answers in the tabs below. Required D Determine the amount of ending inventory using the lower-of-cost-or-market rule applied to each…
Crane Ltd. had the following items in inventory as at December 31, 2024: Item No. Quantity Unit Cost NRV དྷྭ སྒྲ སཱུ སྦ 340 $4.00 $4.30 370 3.00 2.90 380 8.00 9.00 400 7.00 6.80 Assume that Crane uses a perpetual inventory system. Fill in the table below for the lower of cost and net realizable value per unit, the inventory dollar amount at the lower of cost and net realizable value, and the dollar amount of the inventory at cost. ntity Unit Cost NRV Unit LC & NRV 340 $4.00 $4.30 S 370 3.00 2.90 Dollar LC & NRV 4.00 $ 2.90 1360 1073 380 8.00 9.00 8.00 3040 400 7.00 6.80 6.80 2720 Dollar Cost 1360 1110 3040 2800 $ 8193 $ 8310 Prepare any necessary adjusting entry at December 31, 2024. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry) Account Titles Debit Credit
Refer to the photo
Fine Leather Ltd. had the following inventory at December 31 of the current year. Per Unit Item Quantity Cost Net Realizable Value Leather blazers Model 154 20 $ 100 $ 120 Model 160 15 180 168 Model 165 10 250 260 Handbags Model 11 60 30 32 Model 12 40 45 42 Model 13 25 65 63 Required: 1. Determine the value of ending inventory that should be reported on the statement of financial position by applying the LC&NRV rule to Each item of inventory Each major category of inventory Total inventory
Gg.149.
If Wakowski Company's ending inventory was actually $86,000 but was adjusted at year end to a balance of $68,000 in error, what would be the impact on the presentation of the balance sheet and income statement for the year that the error occurred, if any? If no entry is required, select "None" and leave the amount boxes blank. Balance Sheet: Merchandise Inventory $4 Current Assets Total Assets Retained Earnings Income Statement: Cost of Goods Sold Gross Profit/Gross Margin Net Income
19.Your review of ABC Company's inventory and related records for the year revealed the following information:Inventory, 1/1 - 450,000Purchases -3,150,000Sales -4,200,000You conducted a physical inventory on December 31 and determined P450,000 was in the company's warehouse. The management suspects some new employees may have pilfered a portion of the merchandise inventory.What is the cost of the missing inventory assuming that ABC's gross profit remains at 30% of sales?
The condensed Income statement of Chris Co. for the year ended December 31 , 2021 presented below: Chris Co. Income Statement For the Year Ended December 31, 2021 Sales 1,000,000 Cost of goods sold 600,000 400,000 Gross income Operating expenses 150,000 250,000 Net income An examination of the company records shows the following errors must be corrected : • December 31 , 2021 inventory is understated by: P31,000. Accrued expenses of P4,000 and prepaid expenses of P6,000 were not recognized in the company's books . The company employs the expense method in accounting for prepayments. • Sales of P5,000 were not recorded until January 2022 , although the goods were shipped in December 31, 2021, and were excluded from the December 31 physical inventory. Purchases of P30,000 made in December 31 , 2021, were not recorded although the goods were received and properly included in the December 31, physical inventory. A machine was sold for P10,000 on July 1 2021, and the proceeds were credited…
Sheffield Corp. accumulates the following cost and net realizable value data at December 31. Inventory Categories Cost Data Net Realizable Value $12,200 $13,230 Cameras Camcorders DVDs 8,750 11,300 9,450 The lower-of-cost-or-net realizable value $ 9,800 Compute the lower-of-cost-or-net realizable value for company's inventory.