ch.6 - BUSI1002R_Introduction to Accounting_Ch.6_questions...

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BUSI1002R_Introduction to Accounting_Ch.6_questions P. 1 Chapter 6 Inventories and cost of sales (Discussion: QS 6-6, QS 6-7, Ex 6-8; Assignment: P6-2A, P 6-3A, P 6-4A) QS 6-6 Inventory ownership 1. Jabar Company has shipped $600 of goods to Chi Co., and Chi Co. has arranged to sell the goods for Jabar. Identify the consignor and the consignee. Which company should include any unsold goods as parts of its inventory? 2. At year-end, Liu Co. had shipped $750 of merchandise FOB destination to Kwon Co. Which company should include the $750 of merchandise in transit as part of its year-end inventory? QS 6-7 Inventory costs Rivers 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 Rivers Associates’ warehouse was $1,800. Rivers 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 $1,750. Determine the cost of the inventory acquired from the estate.
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