Homework Session 13 Spring 2010 - Session 13 Homework...

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Session 13 Homework Spring 2010 P7–1. Item Amount Explanation Ending inventory (physical count on December 31, 2010) $65,000 Per physical inventory. a. Goods out on trial to customer + 750 Goods held by a customer on trial are still owned by the vendor; no sale or transfer of ownership has occurred. b. Goods in transit from supplier Goods shipped by a supplier, F.O.B. destination, are owned by the supplier until delivery at destination. c. Goods in transit to customer Goods shipped to customers, F.O.B. shipping point, are owned by the customer because ownership passed when they were delivered to the transportation company. The inventory correctly excluded these items. d. Goods held for customer pickup 1,590 The goods sold, but held for customer pickup, are owned by the customer. Ownership has passed. e. Goods purchased and in transit + 2,550 Goods purchased and in transit, F.O.B. shipping point, are owned by the purchaser. f. Goods sold and in transit + 850 Goods sold and in transit, F.O.B. destination, are owned by the seller until they reach destination. g. Goods held on consignment 5,700 Goods held on consignment are owned by the consignor (the manufacturer), not by the consignee. Correct inventory, December 31,2010 $61,860
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P7–3. Req. 1 ATLANTA COMPANY Partial Income Statement For the Month Ended January 31, 2010 (a) (b) (c) (d) Weighted Specific Average FIFO LIFO Identification Sales revenue* $10,540 $10,540 $10,540 $10,540 Cost of goods sold** 3,630 3,220 4,040 3,350 Gross profit $ 6,910 $ 7,320 $ 6,500 $ 7,190 Computations: *620 units @ $17 = $10,540. **Cost of goods sold:
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This note was uploaded on 04/25/2010 for the course HADM 1121 taught by Professor Dittman during the Spring '07 term at Cornell University (Engineering School).

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Homework Session 13 Spring 2010 - Session 13 Homework...

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