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Chapter_8_Valuation_Of_Inventories_A_Cost_Basis Approach_Extra_Class_Problems_And_Solutions

Chapter_8_Valuation_Of_Inventories_A_Cost_Basis Approach_Extra_Class_Problems_And_Solutions

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Intermediate Accounting I Class Problems – Chapter 08 Inventory (General) 1. Maywest Company took a physical inventory on December 31 and determined that goods costing $200,000 were on hand. Not included in the physical count were $15,000 of goods purchased from Taylor Corporation, f.o.b. shipping point and $22,000 of goods sold to Bayberry, Inc. for $30,000, f.o.b. destination point. Both the Taylor purchase and the Bayberry sale were in transit at year-end. What amount should Maywest report as its December 31 inventory? 2. Dragnet, Inc. took a physical inventory on June 30, 2002 and found that they had $500,000 of goods on hand. Included in the physical count was $36,000 of goods sold to Badger Company, f.o.b. shipping point. Not included in the physical count was $75,000 of goods purchased from Digger Company f.o.b. destination point. Both the Badger sale and the Digger purchase were in transit at year-end. What amount should Dragnet report as its June 30 inventory?
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