ch08_sol - Name: Solution Date: Instructor: Course:...

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b9bb4975e758d60a02a8590ce2c7fed5958bc8a8.xlsx, Exercise 8-2 Solution, Page 1 of 8, 03/29/2012, 01:32:30 Name: Solution Date: Instructor: Course: December 31, 2012, showed merchandise with a cost of $441,000 was on hand at that date. You also discover the following items were all excluded from the $441,000 1. Merchandise of $61,000 which is held by Garza on consignment. The consignor is the Bontemps Company. 2. Merchandise costing $33,000 which was shipped by Garza f.o.b. destination to a customer on December 31, 2012. The customer was expected to receive the merchandise on January 6, 2013. 3. Merchandise costing $46,000 which was shipped by Garza f.o.b. shipping point to a customer on December 29, 2012. The customer was scheduled to receive the merchandise on January 2, 2013. 4. Merchandise costing $73,000 shipped by a vendor f.o.b. destination on December 30, 2012, and received by Garza on January 4, 2013. 5. Merchandise costing $51,000 shipped by a vendor f.o.b. seller on December 31, 2012 and received by Garza on January 5, 2013. Instructions: Inventory per physical count $441,000 Goods in transit to customer, f.o.b. destination 33,000 Goods in transit from vendor, f.o.b. shipping point 51,000 Inventory to be reported on balance sheet $525,000 The consigned goods of $61,000 are not owned by Garza and were properly excluded. Intermediate Accounting , 14 th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse E8-2 (Inventoriable Costs) In your audit of Garza Company, you find that a physical inventory on Based on the above information, calculate the amount that should appear on Garza’s balance sheet at December 31, 2012, for inventory. The goods in transit to a customer of $46,000, shipped f.o.b. shipping point, are properly excluded from the inventory because the title to the goods passed when they left the seller (Garza) and therefore a sale and related cost of goods sold should be recorded in 2012. The goods in transit from a vendor of $73,000, shipped f.o.b. destination, are properly excluded from the inventory because the title to the goods does not pass to Garza until the buyer (Garza) receives them.
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b9bb4975e758d60a02a8590ce2c7fed5958bc8a8.xlsx, Exercise 8-2, Page 2 of 8, 03/29/2012, 01:32:31 Name: Date: Instructor: Course: December 31, 2012, showed merchandise with a cost of $441,000 was on hand at that date. You also discover the following items were all excluded from the $441,000 1. Merchandise of $61,000 which is held by Garza on consignment. The consignor is the Bontemps Company. 2. Merchandise costing $33,000 which was shipped by Garza f.o.b. destination to a customer on December 31, 2012. The customer was expected to receive the merchandise on January 6, 2013. 3. Merchandise costing $46,000 which was shipped by Garza f.o.b. shipping point to a customer on December 29, 2012. The customer was scheduled to receive the merchandise on January 2, 2013. 4. Merchandise costing $73,000 shipped by a vendor f.o.b. destination on December 30, 2012, and received by Garza on January 4, 2013.
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This note was uploaded on 03/28/2012 for the course ACC 401 taught by Professor O during the Spring '12 term at Regis University.

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ch08_sol - Name: Solution Date: Instructor: Course:...

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