ordered merchandise on FOB destination terms The merchandise was shipped by the

Ordered merchandise on fob destination terms the

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On December 22, Hampton Co. ordered merchandise on FOB destination terms. The merchandise was shipped by the supplier on December 30 but had not been received by December 31. (d) On December 27, Hampton Co. ordered merchandise on FOB shipping point terms. The merchandise was shipped on December 29 but had not been received by December 31. (e) Merchandise sold FOB shipping point on December 31 was picked up by the freight company just before closing on December 31. (f) Merchandise shipped to a customer FOB destination was picked up by the freight company on December 28 but had not arrived at its destination as of December 31. Indicate which items should be added to (answer: yes) and which items should not be added to (answer: no) the December 31 inventory count.
167. 1. Explain the effect of the following on the financial statements: Goods held on consignment were included in the ending inventory count. 2. What happens if inventory errors are not found and corrected? 168. On the basis of the following data for Barker Industries as of December 31, 2011, determine the value of the inventory at the lower of cost or market. Also, show how the merchandise inventory would appear on the balance sheet (assume that the cost was determined by the FIFO method). Apply lower of cost or market to each inventory item. Commodity Inventory Quantity Unit Cost Price Unit Market Price Size 4 9 $17 Size 5 10 17 Size 6 14 23 Size 7 12 13 169. Based on the following information: compute (a) Inventory turnover; (b) Average daily cost of merchandise sold; and (c) Number of days' sales in inventory for 2011. Use a 365-day year. (d) If an inventory turnover of 12 is average for the industry, how is this company doing? $19 14 20 15 Item 12/31/10 Amount 12/31/11 Amount Cost of merchandise sold $172,900 $160,600 Inventory 18,000 12,000
170. The following data were taken from Bowman Inc. 2014 Cost of Merchandise Sold $894,000 Inventory, end of year 78,000 Inventory, beginning of the year 92,000 Determine the inventory turnover ratio and the number of days’ sales in inventory for Bowman Inc. Round to two decimal places.171. Based on the following information, compute (a) Inventory turnover; (b) Average daily cost of merchandise sold using a 365 day year; and (c) Number of days’ sales in inventory. April 30, 2012 Cost of merchandise sold $195,640 Inventory: Beginning 20,500 Ending 18,628

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