Homework Solutions Chapter 8 and 9.doc - Session3 Inventory over and short:adjust cost of goods sold Inventory errors:although correct itself it wrong

Homework Solutions Chapter 8 and 9.doc - Session3 Inventory...

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Session3 Inventory over and short:adjust cost of goods sold
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Inventory errors:although correct itself, it wrong in 2 periods Solutions to recommended homework problems chapters 8 and 9 E8.1 (LO1, 2) (Inventoriable Costs) Presented below is a list of items that may or may not be reported as inventory in a company's December 31 statement of
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financial position. 1. Goods sold on an installment basis (bad debts can be reasonably estimated). in the income statement 2. Goods out on consignment at another company's store. 在另一家公司的商店寄售的货物 3. Goods purchased f.o.b. shipping point that are in transit at December 31. 4. Goods purchased f.o.b. destination that are in transit at December 31. Not reported in the financial statements. 5. Goods sold to another company, for which our company has signed an agreement to repurchase at a set price that covers all costs related to the inventory. 6. Goods sold where large returns are predictable. income statement. 7. Goods sold f.o.b. shipping point that are in transit at December 31. income statement. 8. Freight charges on goods purchased. 9. Interest costs incurred for inventories that are routinely manufactured. income statement. 10. Materials on hand not yet placed into production by a manufacturing firm. 11. Costs incurred to advertise goods held for resale. income statement. 12. Office supplies. Office supplies in the current assets section of the statement of financial position. 13. Raw materials on which a manufacturing firm has started production but which are not completely processed. 14. Factory supplies.
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15. Goods held on consignment from another company. Not reported in the financial statements. 16. Costs identified with units completed by a manufacturing firm but not yet sold. 17. Goods sold f.o.b. destination that are in transit at December 31. 18. Short-term investments in shares and bonds that will be resold in the near future. Short-term investments in the current asset section of the statement of financial position. EXERCISE 8.1 (15–20 minutes) Items 2, 3, 5, 8, 10, 13, 14, 16, and 17 would be reported as inventory in the financial statements. The following items would not be reported as inventory: 1. Cost of goods sold in the income statement. 4. Not reported in the financial statements.
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