The Kwok Company's inventory balance on December 31, 2021, was $200,000 (based on a 12/31/2021 physical count) beforeconsidering the following transactions:1. Goods shipped to Kwok f.o.b. destination on December 20, 2021, were received on January 4, 2022. The invoice cost was $37,000.2. Goods shipped to Kwok f.o.b. shipping point on December 28, 2021, were received on January 5, 2022. The invoice cost was$24,000.3. Goods shipped from Kwok to a customer f.o.b. destination on December 27, 2021, were received by the customer on January 3,2022. The sales price was $47,000 and the merchandise cost $29,000.4. Goods shipped from Kwok to a customer f.o.b. destination on December 26, 2021, were received by the customer on December 30,2021. The sales price was $27,000 and the merchandise cost $20,00o.5. Goods shipped from Kwok to a customer f.o.b. shipping point on December 28, 2021, were received by the customer on January 4,2022. The sales price was $32,000 and the merchandise cost $19,000.Required:Determine the correct inventory amount to be reported in Kwok's 2021 balance sheet.Answer is complete but not entirely correct.Correct inventory balance$ 323,000 8

Inventory contains both raw materials utilized in manufacturing and completed commodities ready for…

The Kwok Company's inventory balance on December 31, 2021, was $200,000 (based on a 12/31/2021 physical count) before considering the following transactions: 1. Goods shipped to Kwok f.o.b. destination on December 20, 2021, were received on January 4, 2022. The invoice cost was $37,000. 2. Goods shipped to Kwok f.o.b. shipping point on December 28, 2021, were received on January 5, 2022. The invoice cost was $24,000. 3. Goods shipped from Kwok to a customer f.o.b. destination on December 27, 2021, were received by the customer on January 3, 2022. The sales price was $47,000 and the merchandise cost $29,00o. 4. Goods shipped from Kwok to a customer f.o.b. destination on December 26, 2021, were received by the customer on December 30, 2021. The sales price was $27,000 and the merchandise cost $20,000. 5. Goods shipped from Kwok to a customer f.o.b. shipping point on December 28, 2021, were received by the customer on January 4, 2022. The sales price was $32,000 and the merchandise cost $19,000. Required: Determine the correct inventory amount to be reported in Kwok's 2021 balance sheet. Answer is complete but not entirely correct. Correct inventory balance $ 323,000

The Kwok Company's inventory balance on December 31, 2021, was $200,000 (based on a 12/31/2021 physical count) before considering the following transactions: 1. Goods shipped to Kwok f.o.b. destination on December 20, 2021, were received on January 4, 2022. The invoice cost was $37,000. 2. Goods shipped to Kwok f.o.b. shipping point on December 28, 2021, were received on January 5, 2022. The invoice cost was $24,000. 3. Goods shipped from Kwok to a customer f.o.b. destination on December 27, 2021, were received by the customer on January 3, 2022. The sales price was $47,000 and the merchandise cost $29,00o. 4. Goods shipped from Kwok to a customer f.o.b. destination on December 26, 2021, were received by the customer on December 30, 2021. The sales price was $27,000 and the merchandise cost $20,000. 5. Goods shipped from Kwok to a customer f.o.b. shipping point on December 28, 2021, were received by the customer on January 4, 2022. The sales price was $32,000 and the merchandise cost $19,000. Required: Determine the correct inventory amount to be reported in Kwok's 2021 balance sheet. Answer is complete but not entirely correct. Correct inventory balance $ 323,000

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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A physical inventory count showed ABC Company had inventorycosting $428,000 on hand at December 31, 2025. This amountdid not include the following:1. Inventory costing $39,000 that was shipped to acustomer FOB shipping point on December 30, 2025.The inventory was expected to be received by thecustomer on January 3, 2026.2. Inventory costing $17,000 that was shipped to acustomer FOB destination point on December 29, 2025.The inventory was expected to be received by thecustomer on January 6, 2026.3. Inventory costing $26,000 that ABC Company hadpurchased from one of its suppliers. The goodswere shipped to ABC Company on December 31, 2025.ABC Company expects to receive the inventory onJanuary 4, 2026. The shipping terms were FOBshipping point.Calculate the correct dollar amount of ending inventoryto be reported on ABC Company’s December 31, 2025 balancesheet.
During 2021, a company sells 280 units of inventory for $86 each. The company has the following inventory purchase transactions for 2021: Date Transaction Numberof Units UnitCost Total Cost Jan. 1 Beginning inventory 68 $ 68 $ 4,624 May 5 Purchase 166 69 11,454 Nov. 3 Purchase 190 71 13,490 424 $ 29,568 Calculate ending inventory and cost of goods sold for 2021 assuming the company uses FIFO. Ending inventory: __________ Cost of goods sold: ___________
On December 31, 2021, Titanium Inc. had recorded $175,000 in its inventory account. The controller found the following invoices that had not been entered on January 3, 2022: Sold goods costing $7,500 to Silver Co. for $12,000, terms FOB shipping point. The goods were shipped on December 29, and delivered to Silver on January 2, 2022. Sold goods costing $9,000 to Platinum Ltd. for $18,000 on account. The goods were delivered on December 20, 2021, and payment is due January 15, 2022. Purchased goods costing $6,500 on December 21,2021. The shipping terms are FOB destination. The inventory was shipped on December 28, 2021, and received January 3, 2022. What amount should Titanium record as its ending inventory on December 31, 2021? Question 7 options: $145,000 $165,000 $198,000 $158,500
During 2021, a company sells 356 units of inventory for $93 each. The company has the following inventory purchase transactions for 2021: Number of Units 61 Unit Cost Total Cost $61 63 Date Transaction Jan. 1 Beginning inventory May 5 Purchase Nov. 3 Purchase $ 3,721 10,269 12,078 $26,068 163 183 66 407 Calculate ending inventory and cost of goods sold for 2021 assuming the company uses LIFO. Ending inventory Cost of goods sold
A company's inventory on December 31, 2024, was $247,000 based on a physical count priced at cost, and before any necessary adjustment for the following: Inventory costing $ 12,000, shipped f.o. b. shipping point from a vendor on December 30, 2024, was received on January 5, 2025. Inventory costing $14, 000, shipped f.o. b. destination from a vendor on December 28, 2024, was received on January 3, 2025. Inventory costing $70,000 was shipped to a customer f.o. b. destination on December 28, arrived at the customer's location on January 6, 2025. Inventory costing $54,000 was being held on consignment by another company. What amount should the company report as inventory in its December 31, 2024, balance sheet? Please explain your answer in detail of why you included or excluded?