Reeves company is taking a physical inventory on

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Intermediate Accounting: Reporting and Analysis
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Chapter 7 / Exercise P7-2
Intermediate Accounting: Reporting and Analysis
Jones/Wahlen
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9. Reeves Company is taking a physical inventory on March 31, the last day of its fiscal year. Which of the following must be included in this inventory count? a. Goods in transit to Reeves, FOB destination b. Goods that Reeves is holding on consignment for Parker Company c. Goods in transit that Reeves has sold to Smith Company, FOB shipping point d. Goods that Reeves is holding in inventory on March 31 for which the related Accounts Payable is 15 days past due
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Intermediate Accounting: Reporting and Analysis
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Chapter 7 / Exercise P7-2
Intermediate Accounting: Reporting and Analysis
Jones/Wahlen
Expert Verified
CHAPTER 6 3 10. At December 31, 2012 Mohling Company’s inventory records indicated a balance of $652,000. Upon further investigation it was determined that this amount included the following: $112,000 in inventory purchases made by Mohling shipped from the seller 12/27/12 terms FOB destination, but not due to be received until January 2nd $74,000 in goods sold by Mohling with terms FOB destination on December 27th. The goods are not expected to reach their destination until January 6th. $6,000 of goods received on consignment from Dollywood Company What is Mohling’s correct ending inventory balance at December 31, 2012?
11. At December 31, 2012 Howell Company’s inventory records indicated a balance of $928,000. Upon further investigation it was determined that this amount included the following: $168,000 in inventory purchases made by Howell shipped from the seller 12/27/12 terms FOB destination, but not due to be received until January 2nd $111,000 in goods sold by Howell with terms FOB destination on December 27th. The goods are not expected to reach their destination until January 6th. $9,000 of goods received on consignment from Westwood Company What is Howell’s correct ending inventory balance at December 31, 2012?
12. For companies that use a perpetual inventory system, all of the following are purposes for taking a physical inventory except to:
CHAPTER 6 4 13. Inventory costing methods place primary reliance on assumptions about the flow of a. goods. b. costs.c. resale prices. d. values.
14. Alpha First Company just began business and made the following four inventory purchases in June: June 1 150 units $ June 10 200 units 1,170 June 15 200 units 1,260 June 28 150 units 990$4,200A physical count of merchandise inventory on June 30 reveals that there are 250 units on hand. Using the LIFO inventory method, the value of the ending inventory on June 30 is 780

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