Inventory: It refers to the total stock of such goods or items which are held by the business organizations with the purpose of sale. Free on board (FOB): It refers to the term of sales, which states who will be liable for the risk related to the damage of goods in transit. This liability can be of seller or buyer, depends upon the condition. The types of free board are: Free on board (FOB) shipping point Free on board (FOB) destination FOB shipping point: In free on board (FOB) shipping point, ownership of goods transferred from seller to buyer with the transfer of goods to the goods carrier. FOB destination: In free on board (FOB) destination, the ownership and risk related to goods to be sold will remain with the seller till the date on which consignment will be actually received by the buyer. To determine: The amount of inventory of S Company on December 31.

Question

Want to see the full answer?

Answer 1

Question

Chapter 6, Problem 6.2BE

To determine

Inventory: It refers to the total stock of such goods or items which are held by the business organizations with the purpose of sale.

Free on board (FOB): It refers to the term of sales, which states who will be liable for the risk related to the damage of goods in transit. This liability can be of seller or buyer, depends upon the condition.

The types of free board are:

Free on board (FOB) shipping point

Free on board (FOB) destination

FOB shipping point: In free on board (FOB) shipping point, ownership of goods transferred from seller to buyer with the transfer of goods to the goods carrier.

FOB destination: In free on board (FOB) destination, the ownership and risk related to goods to be sold will remain with the seller till the date on which consignment will be actually received by the buyer.

To determine: The amount of inventory of S Company on December 31.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Jimmer has contributed $17,000 to his Roth IRA, and the balance in the account is $20,000. In the current year, Jimmer withdrew $18,800 from the Roth IRA to pay for a new car. If Jimmer's marginal ordinary income tax rate is 23 percent, what amount of tax and penalty, if any, is Jimmer required to pay on the withdrawal in each of the following alternative situations? Jimmer opened the Roth account 44 months before he withdrew the $18,800, and Jimmer is 62 years of age. What is the tax amount?

Alicia has been working for JMM Corporation for 32 years. Alicia participates in JMM's defined benefit plan. Under the plan, for every year of service for JMM, she is to receive 2 percent of the average salary of her three highest consecutive calendar years of compensation from JMM. She retired on January 1, 2024. Before retirement, her annual salary was $588,000, $627,000, and $666,000 for 2021, 2022, and 2023. What is the maximum benefit Alicia can receive in 2024?

ABC Manufacturing Company produces widgets and has been operating for several years. The company's management team is responsible for preparing and monitoring the company's budget to ensure that it stays on track and achieves its financial objectives. ABC Manufacturing Company has recently completed its fiscal year. Management has compiled the planning budget and actual results for the year and has found that the company's actual performance fell short of its budgeted expectations. Management wants your help in gleaning extra information from what we have. The budget and actual results are as follows: Planning budget Sales revenue $5,000 Direct materials 1,000 Direct labor 1,500 Manufacturing overhead 750 Selling and administrative expenses 1,500 Profit $250 Actual results Sales revenue $4,500 Direct materials 1,200 Direct labor 1,100 Manufacturing overhead 900…