Homeworksolution-ch.8

Homeworksolution-ch. - EXERCISE 8-5(10-15 minutes 1 2 3 4 5 Do not include Title to special order merchandise passes to customer on completion Do

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
EXERCISE 8-5 (10-15 minutes) 1. Do not include. Title to special order merchandise passes to customer on completion. 2. Do not include. Title did not pass until January 3, the date the merchandise reached destination. 3. Include in inventory. Product belonged to Majestic at December 31, 2008, as it is not yet shipped to the customer. 4. Include in inventory. Under invoice terms, title passed when goods were shipped on December 31, 2008. 5. Do not include. Goods received on consignment remain the property of the consignor.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
EXERCISE 8-7 (15-20 minutes) (a) Inventory December 31, 2008 (unadjusted) $279,890 Transaction 2 13,420 Transaction 3 -0- Transaction 4 -0- Transaction 5 16,040 Transaction 6 (10,438) Transaction 7 (17,950) Transaction 8 1,500 Inventory December 31, 2008 (adjusted) $282,462 (b) Transaction 3 Sales 12,800 Accounts Receivable 12,800 (To reverse sale entry in 2008) Transaction 4 Purchases 15,630 Accounts Payable 15,630 (To record purchase of merchandise in 2008) Transaction 8 Sales Returns 2,600 Accounts Receivable 2,600 (To record sales return) End of period adjustment (closing) Inventory (ending) 282,462 Purchase Returns and Allowances XXX Purchase Discounts XXX Cost of Goods Sold (force) XXX Inventory (beginning) XXX Purchases XXX Transportation-in XXX
Background image of page 2
EXERCISE 8-8 (15-20 minutes) Items 1, 3, 5, 8*, 10, 13, 15, 16, 18, 19, 20, and 22 would be reported as inventory in the financial statements. The following items would not be reported as inventory: 2. Cost of goods sold in the income statement. 4. Not reported in the financial statements as not yet received. 6. Cost of goods sold in the income statement. 7. Cost of goods sold in the income statement. 9. Selling expense for freight out 11. Interest expense in the income statement. 12. Advertising expense in the income statement. 14. Office supplies in the current asset section of the balance sheet. 17. Not reported in the financial statements as not owned. 21. Temporary investments in the current asset section of the balance sheet. *Note concerning item 8: Freight charges costs are not always allocated between inventory and Cost of goods sold. They are sometimes expensed completely in the year incurred out of expediency.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
EXERCISE 8-17 (20-25 minutes) (1) 1. 2,100 units available for sale – 1,400 units sold = 700 units in the ending inventory. 500 @ $4.58 = $2,290 200 @ 4.60 = 920 700 $3,210 Ending inventory at FIFO cost. 2. 100 @ $4.10 = $ 410 600 @ 4.20 = 2,520 700 $2,930 Ending inventory at LIFO cost. 3. $9,240 cost of goods available for sale ÷ 2,100 units available for sale = $4.40 weighted-average unit cost. 700 units X $4.40 = $3,080
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/18/2010 for the course BUS ACC415 taught by Professor Bibijohn during the Spring '09 term at Seneca.

Page1 / 13

Homeworksolution-ch. - EXERCISE 8-5(10-15 minutes 1 2 3 4 5 Do not include Title to special order merchandise passes to customer on completion Do

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online