Reporting 59 godchaux inc took a physical inventory

Reporting
59. Godchaux Inc. took a physical inventory at December 31, 2019 and determined that €395,000 of
goods were on hand. In addition, the following items were not included in the physical count: (1)
€60,000 of goods purchased were in transit, shipped f.o.b. destination (goods were received by
Godchaux three days on January 3, 2020) and (2) the company shipped f.o.b. destination €25,000
worth of inventory on December 29. The goods arrived at the buyer’s place of business on January
2, 2020. What amount should Godchaux report as inventory at the end of 2019? a. €395,000.
b. €455,000.
c. €420,000.
d. €480,000.
Ans: C, LO: 1, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: Problem Solving, IMA:
Reporting

lOMoARcPSD|13497295
Inventories 6 - 7
60. Ching Inc. took a physical inventory at December 31, 2019 and determined that ¥4,870,000 of
goods were on hand. On December 29, the company had ordered ¥1,010,000 of goods which
were in transit. The goods were shipped f.o.b. shipping point and arrived on January 2, 2020 The
company had also sold and shipped f.o.b. destination ¥950,000 worth of inventory on December
28. The goods arrived at the buyer’s place of business on January 4, 2020. Ching’s December 31,
2019 statement of financial position will report inventory of a. ¥3,860,000.
Reporting
61. Keiko Company took a physical inventory at December 31, 2019 and determined that ¥3,730,000
of goods were on hand. In addition, the company had goods consigned with Chang Company that
had a cost of ¥700,000. On December 29, Keiko sold and shipped f.o.b. shipping point ¥600,000
worth of inventory. These goods arrived at the buyer’s place of business on January 4, 2020. What
amount should Keiko report as inventory on its December 31, 2019 statement of financial
position? a. ¥3,730,000.