# Chapter 6.A Homework## Question 1 of 6### Current Attempt in ProgressWildhorse Co. just took its physical inventory on December 31. The count of inventory items on hand at the company’s business locations resulted in a total inventory cost of $289,300. In reviewing the details of the count and related inventory transactions, you have discovered the following items that had not been considered:1. **Wildhorse has sent inventory costing $30,510 on consignment to Richfield Company.** All of this inventory was at Richfield’s showrooms on December 31.2. **The company did not include in the count inventory (cost, $18,270) that was sold on December 28, terms FOB shipping point.** The goods were in transit on December 31.3. **The company did not include in the count inventory (cost, $12,840) that was purchased with terms of FOB shipping point.** The goods were in transit on December 31.**Compute the correct December 31 inventory.**Correct December 31 inventory: $ [__________]Options available:- eTextbook and Media- List of Accounts**Attempts: 0 of 3 used**The page includes a field for entering the correct inventory amount and a button to submit the answer.

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Answered: Wildhorse Co. just took its physical…

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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Bramble Company just took its physical inventory. The count of inventory items on hand at the company's business locations resulted in a total inventory cost of $350,000. In reviewing the details of the count and related inventory transactions, you have discovered the following items had not been considered. 1. Bramble has sent inventory costing $21,000 on consignment to Alissa Company. All of this inventory was at Alissa's showrooms on December 31. 2. The company did not include in the count inventory (cost, $20,000) that was sold on December 28, terms FOB shipping point. The goods were in transit on December 31. 3. The company did not include in the count inventory (cost, $14,000) that was purchased with terms of FOB shipping point. The goods were in transit on December 31. Compute the correct December 31 inventory. Correct December 31 inventory $
Wildhorse Company took a physical inventory on December 31 and determined that goods costing $676,000 were on hand. Not included in the physical count were $9,000 of goods purchased from Sandhill Corporation, f.o.b. shipping point, and $29,000 of goods sold to Ro-Ro Company for $37,000, f.o.b. destination. Both the Sandhill purchase and the Ro-Ro sale were in transit at year-end. What amount should Wildhorse report as its December 31 inventory? December 31 Inventory $ %24
(i)The inventory costing $ 150,000 being ordered by customers before the year end was excluded from the ending inventory balance as they are set aside for delivery after year end. The ending balance of inventory as on the statement of financial position was $ 600,000. (ii) Inventory list shows 40 boxes of rice but only 38 boxes were found in the warehouse. (iii) The inventory has a cost of $600,000 and realizable value of $540,000 as the items are outdated. The ending balance of inventory as on the statement of financial position was $ 600,000. Q) For each misstatement above, explain which of the above assertions is violated. (Each assertion can only be used once.) Also, give the relevant audit objective the auditor should focus on when detecting the misstatement if the assertion is "Valuation and Allocation "
You are the senior accountant for a shoe wholesaler that uses the periodic inventory method. You have determined the following information from your company’s records, which you assume is correct: Inventory of $296,064 was on hand at the start of the year. Purchases for the year totalled $2,028,000. Of this, $1,694,400 was purchased on account; that is, accounts payable was credited for this amount at the time of the purchase. A year-end inventory count revealed inventory of $389,760 Required: b) Assume now that your company uses the perpetualmethod of inventory control, and that your records show that $1,857,990 of inventory (at cost) was sold during the year. What is the adjustment needed to correct the records, given the inventory count in item 3 above?
Accounting The Concord Hat Shop Limited counted the entire inventory in its store on August 31 and arrived at a total inventory cost of $98,200. The count included $7,700 of inventory held on consignment for a local designer; $480 of inventory that was being held for customers who were deciding if they actually wanted to purchase the merchandise; and $1,100 of inventory that had been sold to customers but was being held for alterations. There were two shipments of inventory received on September 1. The first shipment cost $5,400. It had been shipped on August 29, terms FOB destination. The second shipment cost $4,310, plus freight charges of $260. It had been shipped on August 28, terms FOB shipping point. Neither of these shipments was included in the August 31 count. Calculate the correct cost of the inventory on August 31. Inventory cost $

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