Yarn Imports Corp. is preparing an inventory listing, and is assigning a cost to inventory that arrived on December 29, two days before the end of the year. The following elements of potential cost have been identified: Invoice price; the amount was prepaid when the goods were ordered because the supplier offered a 5%. discount for payment up front. Goods were custom-manufactured for Yarn after the order date. The invoice price was for $74,800, less 5% HST on invoice price, $10,659 Interest on borrowed money between the time the deposit was paid and the goods were delivered, $650 Delivery charges, paid by the supplier, $1,050 Required: Calculate the value to include in inventory of Yarn Imports Corp. Value to be included in inventory $ 72,795
Yarn Imports Corp. is preparing an inventory listing, and is assigning a cost to inventory that arrived on December 29, two days before the end of the year. The following elements of potential cost have been identified: Invoice price; the amount was prepaid when the goods were ordered because the supplier offered a 5%. discount for payment up front. Goods were custom-manufactured for Yarn after the order date. The invoice price was for $74,800, less 5% HST on invoice price, $10,659 Interest on borrowed money between the time the deposit was paid and the goods were delivered, $650 Delivery charges, paid by the supplier, $1,050 Required: Calculate the value to include in inventory of Yarn Imports Corp. Value to be included in inventory $ 72,795
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Yarn Imports Corp. is preparing an inventory listing, and is assigning a cost to inventory that arrived on December 29, two days before
the end of the year. The following elements of potential cost have been identified:
Invoice price; the amount was prepaid when the goods were ordered because the
supplier offered a 5%.
discount for payment up front. Goods were custom-manufactured for Yarn after the
order date.
The invoice price was for $74,800, less 5%
HST on invoice price, $10,659
Interest on borrowed money between the time the deposit was paid and the goods
were delivered, $650
Delivery charges, paid by the supplier, $1,050
Required:
Calculate the value to include in inventory of Yarn Imports Corp.
Value to be included in inventory
$
72,795](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7801336d-b4b8-4217-959a-23068e4abf02%2Fe0002d2c-21e8-4c4e-8197-1afd71c3cc26%2F6mmjyy_processed.png&w=3840&q=75)
Transcribed Image Text:Yarn Imports Corp. is preparing an inventory listing, and is assigning a cost to inventory that arrived on December 29, two days before
the end of the year. The following elements of potential cost have been identified:
Invoice price; the amount was prepaid when the goods were ordered because the
supplier offered a 5%.
discount for payment up front. Goods were custom-manufactured for Yarn after the
order date.
The invoice price was for $74,800, less 5%
HST on invoice price, $10,659
Interest on borrowed money between the time the deposit was paid and the goods
were delivered, $650
Delivery charges, paid by the supplier, $1,050
Required:
Calculate the value to include in inventory of Yarn Imports Corp.
Value to be included in inventory
$
72,795
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