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) $15,000
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 Answer
Want to see the step-by-step answer?
Related Accounting Q&A
Q: High Country, Inc., produces and sells many recreational products. The company has just opened a new...
A: 1 (a) Compute the unit product cost using absorption costing:
Q: The stockholders’ equity section of Creighton Company’s balance sheet is shown as follows: CREI...
A: a. Two items are appearing in the Equity section of the balance Sheet- Preferred stock and paid in c...
Q: Problem 25-3A Computation of cash flows and net present values with alternative depreciation methods...
A: Compute the net income after tax:
Q: Other accrued liabilities—warranties Kohl Co. provides warranties for many of its products. The Janu...
A: Warranty expense: It is an estimated expense which arises when the company sells the products. There...
Q: Zenon Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day...
A: Flexible Budget: The flexible budget is a budget which modifies itself as per the variations in the ...
Q: Ruiz Co. provides the following sales forecast for the next four months: April May June ...
A: Production budget: Production budget is the estimation or projection of number of units the company ...
Q: Brief Exercise 13-13Larkspur Factory provides a 2-year warranty with one of its products which was f...
A: Prepare the journal entries to record the transactions during 2017:
Q: The Malaysian subsidiary of the PPC distributed and assembled electric motors. It also had limited m...
A: Computation of Investment:Initial Investment = Rs. 67.5 CrAdditional Investment = Rs. 30 Cr @ 10% p....
Q: I'm not sure how to start working this problem Exercise 6-1 Waterway Sports sells volleyball kits ...
A: Flexible budget: A flexible budget is referred as a thorough plan for controlling the fixed and vari...
Q: Hi, can you help me solve this? My values are not correct but I followed the example video and did t...
A: Prepare journal entries for the above transactions:
Q: What is the difference between the direct method and the indirect method of presenting the cash flow...
A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and cas...
Q: Suppose your company sells goods for $450, of which $275 is received in cash and $175 is on account....
A: Journal entry: The record of business transactions in a chronological order in the journal using deb...
Q: A company must decide between scrapping or reworking units that do not pass inspection. The company ...
A: Step 1: Workings for the answer:
Q: I understand the accounting equation is: Liabilities + Stock Holders’ Equity = Assets How do you pre...
A: The basic Accounting Equation is Assets = Equity + LiabilitiesAssets are the resources owned by the...
Q: HH purchased new shelving for its store on April 1, 2018. The shelving is expected to have a 20-year...
A: Since, we only answer upto 3 sub-parts, we'll answer the first 3.Please resubmit the question and sp...
Q: Backyard Bulldog Barbecue Sauces, Inc., founded by Jefe Allen, produces a variety of barbecue sauces...
A: Different types of costs by Backyard Bulldog Barbecue Sauces, Inc. are as follows: Manufacturing cos...
Q: I'm having trouble finding the missing values for the on company and off company sections, letters a...
A: Click to see the answer
Q: A portion of the stockholders’ equity section from the balance cheet of WC appears as below. Stockho...
A: Cash dividends A profitable organization can distribute a part of their profit to the shareholders a...
Q: Explain what is meant by the term management by exception. What is the relationship between the proc...
A: Management by exception: Under this style of management, employees are allowed to take decisions rel...
Q: I'm having trouble finding the value for the inventory balance as of january 31st for the cost of fi...
A: Finished goods inventory are completely ready for sale after completing the manufacturing process.
Q: The following expenditures relating to plant assets were made by Glenn Company during the first 2 mo...
A: Expenditures: The useful life of the plant assets signifies the time period, that the company estima...
Q: How is the earned income credit determined?
A: Earned income credit: Earned income credit is a refundable tax credit system designed by the federal...
Q: I need help solving this problem, thanks!
A: a) Compute the number of units in work in process inventory at March 31:
Q: During the current year, Hitchcock Developers disposed of plant assets in the following transactions...
A: Disposal of asset: Disposal of asset is a non-recurring transaction, which record the sale of asset....
Q: Hello, Cowboy recording studio is considering the investment of $142,700 in a new recording equipmen...
A: Step 1:Calculation of the present value factor of annuity:Note: while calculating the present valu...
Q: Suppose your company sells goods for $450, of which $275 is received in cash and $175 is on account....
A: Operating activities: Operating activities refers to those activities which are performed by the com...
Q: Okay, I have everything else in the journal entry except for the last one. I'm attaching a picture ...
A: Discount on notes receivable: A contra asset account arising when the present value of a note receiv...
Q: HOW DO I FIGURE OUT RETAINED EARNINGS on an income statement
A: Retained earnings is the amount retained from the profits of the company after deducting dividends a...
Q: Affordable Lawn Care, Inc., provides lawn mowing services to both commercial and residential custome...
A: Prepare an income statement, statement of retained earnings and balance sheet of Incorporation A for...
Q: At the beginning of the current period, Sunland Company had balances in Accounts Receivable of $201,...
A: Hello! Thank you for your question. As per the company policy, we solve the first three parts of the...
Q: Flexible Budgets; Total Operating Income Variance; Breakdown of the Total Operating Income Variance;...
A: Calculate total operating income variance.
Q: Other accrued liabilities—warranties The balance of the Estimated Warranty Liability account was $25...
A: Calculate the amount of warranty expense for the year ended December 31, 2016.
Q: I attempted this problem and tried to do the company's income statement for on company for december ...
A: Calculate the missing amounts:
Q: East Alabama Medical Center uses nonfinancial performance measures to track the following objectives...
A: Balanced Scorecard helps in evaluating a corporation using a both financial and non-financial measu...
Q: I would like help with question number 4 and 5 Andretti Company has a single product called a Dak....
A: Product Costing: Accounting process to determine the total cost incurred to manufacture a product on...
Q: Suppose the following information was taken from the 2017 financial statements of FedEx Corporation,...
A: The given question can be answered in the following manner :
Q: Problem 14-5In each of the following independent cases, the company closes its books on December 31....
A: Amortization of bond: The process of allocation and reduction of the discount or premium on bonds to...
Q: Cost Classification Match each cost to the appropriate cost behavior pattern shown in graphs (a) ...
A: Cost behaviour pattern exhibits the pattern in which the expenses change or remain stable over vario...
Q: Why do prices at theme parks in Orlando, Florida, remain high despite seasonal and economic cyclical...
A: Besides Walt Disney, there are several amusement parks in Florida.Amusement parks see a great footfa...
Q: The assets and liabilities of a company are $85,696 and $44,373, respectively. Stockholders' equity ...
A: Accounting equation:Accounting equation is an accounting tool expressed in the form of equation, by ...
Q: Rida, Inc., a manufacturer in a seasonal industry, is preparing its direct materials budget for the ...
A: Direct material budget: Direct material budget shows how much raw material purchase for the manufact...
Q: Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall ...
A: Asset Turnover ratio: It is an efficacy ratio which measure the value of Companies sales in comparis...
Q: Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For it...
A: Activity-based costing (ABC): The costing method which allocates overheads to the products based on ...
Q: [The following information applies to the questions displayed below.]The December bank statement and...
A: Preparation of the adjusting journal entries after the reconciliation statement. We have,
Q: Ruiz Co. provides the following sales forecast for the next four months: April May June ...
A: The direct material budget can be calculated as follows :
Q: Cost classifications For each of the following costs, check the column(s) that most likely applies (...
A: Fixed cost: A fixed cost is a cost incurred by a company that remains fixed irrespective of the volu...
Q: Krammer Company has liabilities equal to one fourth of the total assets. Krammer's stockholders' equ...
A: Accounting Equation: Accounting equation is the mathematical representation of the relationship amon...
Q: Hi, Need help with equation - Also see attached Profit=(P x Q - V x Q) - Fixed expenses Thanks, L...
A: Cost Volume-Profit (CVP) is a management accounting tool that expresses relationship among total sal...
Q: Hello, A task force of capital budgeting analysts at Morrison Ltd., collected the following data con...
A: The Net Present Value of the project has to be determined by deducting the present values of all inf...
Q: is the answer correct?
A: Material spending variance is the total variance on the materials and includes both material purchas...