Fundamental Accounting Principles
23rd Edition
ISBN: 9781259536359
Author: John J Wild, Ken Shaw Accounting Professor, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Chapter 6, Problem 2E
Exercise 6-2
Inventory costs
C2
Walberg Associates, antique dealers, purchased the contents of an estate for $75,000. Terms of the purchase were FOB shipping point, and the cost of transporting the goods to Walberg Associates’s warehouse was $2,400. Walberg Associates insured the shipment at a cost of $300. Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $980. Determine the cost of the inventory acquired from the estate.
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Exercise 6-2 (Algo) Inventory costs LO C1
Walberg Associates, antique dealers,
purchased goods for $38,700. Terms of the
purchase were FOB shipping point, and the
cost of transporting the goods to Walberg
Associates's warehouse was $1,800. Walberg
Associates insured the shipment at a cost of
$270. Prior to putting the goods up for sale,
they cleaned and refurbished them at a cost of
$610.
Determine the cost of inventory.
Cost of inventory
Total cost of inventory
$
0
Exercise 5-2 Inventory costs LO C2
Walberg Associates, antique dealers, purchased goods for $38,700. Terms of the purchase were FOB shipping point, and the cost of
transporting the goods to Walberg Associates's warehouse was $1,80O. Walberg Associates insured the shipment at a cost of $270.
Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $610.
Determine the cost of inventory.
Cost of inventory
Total cost of inventory
24
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Exercise 5-2 (Algo) Inventory costs LO C1
Walberg Associates, antique dealers, purchased goods for $38,100. Terms of the purchase were FOB shipping point, and the cost of
transporting the goods to Walberg Associates's warehouse was $1,500. Walberg Associates insured the shipment at a cost of $210.
Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $550.
Determine the cost of inventory.
Cost of inventory
Total cost of inventory
$
0
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Chapter 6 Solutions
Fundamental Accounting Principles
Ch. 6 - Prob. 1DQCh. 6 - 2. Where is the amount of merchandise inventory...Ch. 6 - Prob. 3DQCh. 6 - Prob. 4DQCh. 6 - What does the full disclosure principle prescribe...Ch. 6 - Prob. 6DQCh. 6 - Prob. 7DQCh. 6 - Prob. 8DQCh. 6 - Prob. 9DQCh. 6 - What is the meaning of market as it is used in...
Ch. 6 - Prob. 11DQCh. 6 - Prob. 12DQCh. 6 - Prob. 13DQCh. 6 - Prob. 14DQCh. 6 - Prob. 15DQCh. 6 - Prob. 16DQCh. 6 - Prob. 17DQCh. 6 - Prob. 1QSCh. 6 - Prob. 2QSCh. 6 - Prob. 3QSCh. 6 - Prob. 4QSCh. 6 - Prob. 5QSCh. 6 - QS 64
Perpetual Inventory costing with weighted...Ch. 6 - Periodic: Inventory costing with FIFO P3 Refer to...Ch. 6 - Prob. 8AQSCh. 6 - Prob. 9AQSCh. 6 - Prob. 10QSCh. 6 - Prob. 11QSCh. 6 - Prob. 12QSCh. 6 - Prob. 13QSCh. 6 - Prob. 14AQSCh. 6 - Prob. 15AQSCh. 6 - Prob. 16AQSCh. 6 - Prob. 17AQSCh. 6 - Prob. 18QSCh. 6 - Prob. 19QSCh. 6 - Prob. 20QSCh. 6 - Prob. 21QSCh. 6 - Prob. 22BQSCh. 6 - International accounting standards C2 P2 Answer...Ch. 6 - Exercise 6.1 Inventory ownership I. At rear-end,...Ch. 6 - Exercise 6-2 Inventory costs C2 Walberg...Ch. 6 - Prob. 3ECh. 6 - Prob. 4ECh. 6 - Prob. 5AECh. 6 - Exercise 6-6A Periodic: Income effects of...Ch. 6 - Prob. 7ECh. 6 - Prob. 8ECh. 6 - Prob. 9AECh. 6 - Prob. 10ECh. 6 - Prob. 11ECh. 6 - Prob. 12ECh. 6 - Prob. 13ECh. 6 - Prob. 14AECh. 6 - Prob. 15AECh. 6 - Prob. 16BECh. 6 - Prob. 17BECh. 6 - Prob. 18ECh. 6 - Prob. 1APSACh. 6 - Prob. 2AAPSACh. 6 - Prob. 3APSACh. 6 - Prob. 4AAPSACh. 6 - Prob. 5APSACh. 6 - Prob. 6APSACh. 6 - Prob. 7AAPSACh. 6 - Prob. 8AAPSACh. 6 - Prob. 9ABPSACh. 6 - Prob. 10ABPSACh. 6 - Prob. 1BPSBCh. 6 - Problem 6-2BA
Periodic: Alternative cost...Ch. 6 - Prob. 3BPSBCh. 6 - Prob. 4BAPSBCh. 6 - Prob. 5BPSBCh. 6 - Prob. 6BPSBCh. 6 - Prob. 7BAPSBCh. 6 - Prob. 8BAPSBCh. 6 - Prob. 9BBPSBCh. 6 - Prob. 10BBPSBCh. 6 - Prob. 6SPCh. 6 - Prob. 1BTNCh. 6 - Prob. 2BTNCh. 6 - Prob. 3BTNCh. 6 - Prob. 4BTNCh. 6 - Prob. 5BTNCh. 6 - Prob. 6BTNCh. 6 - Review the chapter’s opening feature highlighting...Ch. 6 - Prob. 8BTNCh. 6 - Prob. 9BTN
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- Exercise 5-2 Inventory costs LO C2 Walberg Associates, antique dealers, purchased goods for $37,900. Terms of the purchase were FOB shipping point, and the cost of transporting the goods to Walberg Associates's warehouse was $1,400. Walberg Associates insured the shipment at a cost of $190. Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $530. Determine the cost of inventory. Cost of inventory Total cost of inventoryarrow_forwardChapter 1 46 Additional inforrmation: a Goods in transit, with an invoice cost of PS0,000 and purchased FOB shipping point, were recorded and included in the year-end physical count of inventory as "goods in transit." b. Goods in transit, with an invoice cost of P10,000 and purchased FOB destination, were recorded only on January 3, 20x2 when the shipment was received. c. Ego Co. returned damaged goods costing P20,000 on Dec. 29 20x1. However, Ego Co. recorded the related credit memo only on January 4, 20x2. d. On December 31, 20x1, Ego Co. recorded a P60,000 check payable to a supplier. The check was dated January 7, 20x2. How much are the adjusted balances of (1) Inventory and (2) Accounts payable on December 31, 20x1? a. 780,000; 1,000,000 b. 790,000; 1,010,000 c. 800,000; 1,000,000 d. 810,000; 1,010,000 9. Wooten Co. sells subscriptions for access to an online file sharing site. Subscriptions are collected in advance and credited to sales. An analysis of the recorded sales activity…arrow_forwardA-6arrow_forward
- Module 5 Periodic and Perpetucal Inventory Homework 1) Please show how to record the following transactions in the periodic method of inventory 2) Please explain each answer to the following 7 questions. 1) Purchased $5000 of goods on account 2) Goods costing $35 were damaged and returned to the seller, the seller reduced the amount owed by $35. 3) New Sales Company found that items costing $95 were not ordered and could not be used. New Sales returned the items and the supplier reduced the amount owed. 4) Paid the seller the amount owed. 5) Sold inventory that cost us $300 for $525 on account 6) Freight to get the merchandise to our customer cost us $50 7) Accepted a return of merchandise which was the wrong color for the customer. Sold the merchandise for $72, and our cost was $56.arrow_forwardMODULE 5 INVENTORY PERPETUAL Please envision the following transactions. Please 1) Show how each would be recoreded and 2) explain the reason. I appreciate your help and answers. 1) Sold inventory that had cost us $800 for $1,000 on account to Smith. Freight to get the merchandise to our customer was paid by the customer. 2) Accepted a return of merchandise from the June 7 sale to Smith that was the wrong size for the customer. We had sold the merchandise for $300; our cost was $240. 3) Shipped merchandise that had cost us $940 to Jones. New Stuff billed the customer $1,175 on the sale and paid $25 in freight to get the merchandise to the customer 4) Gnu Company uses the perpetual method of recording inventory. Its records show Inventory on hand of $15,889. A count of the inventory, however, finds only $14,278 of inventory on hand. Record the entry needed by Gnu to correct its records. 5) George, Inc. uses the perpetual method of recording inventory. Its records show Inventory on…arrow_forwardPROBLEM 8.9 Comparison of Periodic and Perpetual Inventory Systems During the current year. Playground Specialists purchased six BigGym redwood playground set at the following dates and acquisition costs: Units Purchased Unit Cost Total Cost Date Aug. 4 $2,100 $ 4,200 Sept. 23 2,300 4,600 Oct. 2. Available for sale during the year 2.560 5,120 $13,920 On September 25. the company sold three of these BigGym sets to the Department of Parks and Recreation. The other three sets remained in inventory at December 31. 222611arrow_forward
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- Costs Included in Inventory Belozovsky Motors, a car dealership, acquires a used car for $14,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include the following: ● $250 for transportation-in $300 for shipping insurance $900 for car import duties $150 for advertising $1,250 for sales staff salaries $180 for trimming shrubs.arrow_forwardAAarrow_forwardProblem 10 Lakeside Restaurant purchased inventory from Valley Packing, receiving an invoice dated February 3, 20X4, for $2,000 with terms 2/10, n/30. l notb Required: dtbedeldetes e Using the net method of recording purchases, complete the following: 1. Record the purchase of the inventory. (bool 2. Record the payment of the invoice within the discount period. 3. Record the payment of the invoice after the discount period.arrow_forward
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