Assignment_4_Solution

Assignment_4_Solution - 3. Add to inventory: Title passed...

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BRIEF EXERCISE 6-2 (a) The ending inventory under FIFO consists of 400 units at $9 for a total allocation of $3,600. (b) The ending inventory under LIFO consists of 300 units at $6 + 100 units at $8 for a total allocation of $2,600 ($1,800 + $800). EXERCISE 6-1 Ending inventory physical count. ................................................ $295,000 1. No effect - title passes to purchaser upon shipment when terms are FOB shipping point. ............................. 0 2. No effect - title does not transfer to Homer until goods are received. .........................................................
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Unformatted text preview: 3. Add to inventory: Title passed to Homer when goods were shipped. ....................................................... 25,000 4. Add to inventory: Title remains with Homer until purchaser receives goods. ............................................. 51,000 5. The goods did not arrive prior to year-end. The goods, therefore, cannot be included in the inventory. ........... (37,000 ) Correct inventory. ........................................................................... $334,000...
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This note was uploaded on 03/28/2009 for the course CSE 120A taught by Professor Healey during the Spring '08 term at UC Irvine.

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