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Unformatted text preview: CHAPTER 8 HOMEWORK - SOLUTIONS E 8-20 Presented below is a list of items that may or may not be reported as inventory in a companys December 31 balance sheet. Indicate which of those items would be reported as inventory in the financial statements. If an item should NOT be reported as inventory, indicate how it should be reported in the financial statements. 1. Goods held on consignment from another company 2. Factory supplies 3. Interest costs incurred for inventories that are routinely manufactured 4. Goods sold on an installment basis (bad debts can be reasonably estimated) 5. Goods sold where large returns are predictable 6. Freight costs incurred on purchased inventory 7. Short-term investments in stock and bonds that will be resold in the near future 8. Goods sold FOB destination that are in transit at December 31 9. Goods out on consignment at another companys store 10. Goods purchased FOB shipping point that are in transit on December 31 11. Materials on hand not yet placed into production by a manufacturing firm 12. Costs identified with units completed by a manufacturing firm but not yet sold12....
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This note was uploaded on 11/17/2010 for the course ACC ACC 305 taught by Professor Rogero during the Spring '10 term at University of Dayton.
- Spring '10
- Balance Sheet