22. The inventory account of Irick Company at December 31, 2010, included the following items:Inventory Amount:Merchandise out on consignment at sales price(including markup of 40% on selling price) $15,000Goods purchased, in transit (shipped f.o.b. shipping point) 12,000Goods held on consignment by Irick 13,000Goods out on approval (sales price $7,600, cost $6,400) 7,600Based on the above information, the inventory account at December 31, 2010, should be reduced bya. $20,200.b. $22,600.c. $32,200.d. $32,000.
22. The inventory account of Irick Company at December 31, 2010, included the following items:Inventory Amount:Merchandise out on consignment at sales price(including markup of 40% on selling price) $15,000Goods purchased, in transit (shipped f.o.b. shipping point) 12,000Goods held on consignment by Irick 13,000Goods out on approval (sales price $7,600, cost $6,400) 7,600Based on the above information, the inventory account at December 31, 2010, should be reduced bya. $20,200.b. $22,600.c. $32,200.d. $32,000.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.12E: Inventory analysis Costco Wholesale Corporation (COST) and Wal-Mart Stores Inc. (WMT) compete...
Related questions
Question
22. The inventory account of Irick Company at December 31, 2010, included the following items:
Inventory Amount:
Merchandise out on consignment at sales price
(including markup of 40% on selling price) $15,000
Goods purchased, in transit (shipped f.o.b. shipping point) 12,000
Goods held on consignment by Irick 13,000
Goods out on approval (sales price $7,600, cost $6,400) 7,600
Based on the above information, the inventory account at December 31, 2010, should be reduced by
a. $20,200.
b. $22,600.
c. $32,200.
d. $32,000.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,