A distributor of artistic iron-based fixtures acquires a piece for $1,000, terms FOB shipping point. Additional costs in obtaining it and offering it for sale include $150 for transportation-in, $300 for import duties, $100 for insurance during shipment, $200 for advertising, a $50 voluntary gratuity to the delivery person, $75 for enhanced store lighting, and $250 for sales staff salaries. For computing inventory, what cost is assigned to this artistic piece?

Q: A car dealer acquires a used car for $16,000, with terms FOB shipping point. Compute total inventory…

A: Advertising, Sales staff salaries and trimming shrubs are the indirect cost that should not form…

Q: Hans Company has 2 items that are under evaluation for possible year-end adjustments. First is the…

A: Cost of goods available for sale states the cost of the aggregate goods produced during the period…

Q: A car dealer acquires a used car for $14,000, with terms FOB shipping point. Compute total inventory…

A:

Q: Murphy Hardware bought 800 3-cubic-feet bags of organic peat moss from Mitchell Garden Distributors…

A: Journal is the book of original entry in which all the financial transactions relating to the…

Q: Splish Brothers Bank and Trust is considering giving Pohl Company a loan. Before doing so, it…

A: Answer:

Q: A car dealer acquires a used car for $15,000, with terms FOB shipping point. Compute total inventory…

A: Formula: Total Inventory cost = Car cost + Transportation + shipping insurance + import duties…

Q: lberg Associates, antique dealers, purchased goods for $38,700. Terms of the purchase were FOB…

A: Solution: Cost of inventory includes all those costs which are incurred to bring the inventory in…

Q: Walberg Associates, antique dealers, purchased goods for $38,100. Terms of the purchase were FOB…

A: Cost of inventory includes the cost of purchase material/goods, freight, and any taxes paid by the…

Q: Walberg Associates, antique dealers, purchased goods for $39,500. Terms of the purchase were FOB…

A: Solution: Cost of inventory includes purchase price, transit insurance, freight and all other cost…

Q: The Famcor Sales Company employs the perpetual inventory basis in the accounting for new cars. On…

A: Following are the calculation of realized gross profit as of December 31, 2013:

Q: A car dealer acquires a used car for $ 14,000, with term FOB shipping point. Compute total inventory…

A: Under FOB shipping point sales, all transport charges are paid by buyer only. So buyer should…

Q: U-Save Automotive Group purchased 10 vehicles during the current month. Two trucks were purchased…

A: Specific identification method can be applied in situations where different purchases can be…

Q: A car dealer acquires a used car for $12,000, with terms FOB shipping point. Compute total inventory…

A: The inventory cost is the cost incurred in bringing a product to sale and making it available for…

Q: Southwest Milling Co. purchaseda front-end loader to move stacks of lumber. The loader had a list…

A: Discount = 4% of List price = 4% of 140000 = $ 5600

Q: Cable Company reviewed its year-end inventory and found the following items: A. A package containing…

A: Inventories are defined as Asset as per PAS 2 as :-  Paragraph 6 - held for sale in the ordinary…

Q: 1. What is the correct amount of inventory? 2. What is the correct amount of accounts payable? 3.…

A:

Q: On September 30, 2020, a fire at Cherimoya Company’s warehouse caused severe damage to its entire…

A: Gross profit means the difference between the sale revenue and cost of production. Cost of goods…

Q: Jansen Corporation shipped $20,000 of merchandise on consignment to Gooch Company. Jansen paid…

A: Journal entry is a process of recording and classifying business transactions into books of accounts…

Q: On December 15, 2019, Flanagan purchased goods costing $100,000. The terms were FOB shippingpoint.…

A: Inventoriable costs includes all costs necesssary to prepare product for sale. For a selling…

Q: The trial balance of Esplanade Company showed inventories of P164,000. The inventories include some…

A: Defective goods: Improperly packaged or faulty goods are those that do not conform to the contract.…

Q: Esperado Furnishings are retailers who purchase and sell household furnishings, including…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: A solar panel dealer acquires a used panel for $9,000, with terms FOB shipping point. Compute total…

A: Inventory: Inventories are the primary materials which are used in the production process to get…

Q: Walberg Associates, antique dealers, purchased goods for $75,000. Terms of the purchase were FOB…

A: Cost of inventory = Purchases + Transportation In + Shipment insurance + Cleaned and refurbished…

Q: A car dealer acquires a used car for $11,000, with terms FOB shipping point. Compute total inventory…

A: Inventory means the stock of goods in which the businessmen deals. All cost related with purchase of…

Q: Al Wardi marketing company purchases mobiles directly from manufacturers and sells it to small…

A: Lets understand each method here. In First In First Out(FIFO) method company assumes that, goods…

Q: southwest milling co. purchased a front end loader to move stacks of lumber.  the loader had a list…

A: a.Calculate the amount to be capitalized in an asset account for the purchase of the front end…

Q: The correct balance of the inventory after any allowance for write down is a. P427,000 b. P486,500…

A: Inventory: Inventory can be defined as the current asset of the company that represents the goods…

Q: Several finished products are listed in the inventory account. One such product, X444, is carried at…

A: The decision with regards to the sale or further process can be taken by estimating the net cash…

Q: On September 30, 2020, a fire at Cherimoya Company’s warehouse caused severe damage to its entire…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: Royal Crown Corp. has the following information to an inventory: Materials -P800,000; Storage cost…

A: Note: Delivery to customers charges will not be included in the inventory cost. These expense are…

Q: Walberg Associates, antique dealers, purchased goods for $37,500. Terms of the purchase were FOB…

A: Cost of the inventory = Purchase price + Freight + Insurance during transit + Cleaned and…

Q: On December 28, 2020, INDIGO Company purchased goods costing ₱500,000. The terms were FOB…

A: Cost of inventory includes all cost that incurred in purchasing and carrying to the location as…

Q: A solar panel dealer acquires a used panel for $12,400, with terms FOB shipping point. Compute total…

A: Note: Cost of inventory includes the cost of purchase material/goods, freight, and any taxes paid by…

Q: Walberg Associates, antique dealers, purchased goods for $39,300. Terms of the purchase were FOB…

A: As per IAS 2, Inventories,  Cost of inventory includes purchase price, cost of…

Q: A car dealer acquires a used car for $15,000, with terms FOB shipping point. Compute total inventory…

A: The cost related to inventory are categorised in two ways - one as to include in the cost of…

Q: A car dealer acquires a used car for $20,000, with terms FOB shipping point. Compute total inventory…

A: As per IFRS 2, Inventories,  Cost of inventory includes purchase price,transportation costs,…

Q: What is the cost of goods sold to be reported in the 2016 combined statement of comprehensive income

A: Jose Corporation transferred inventory from its home office to its Laguna branch at a billed price…

Q: December 28, 2019, Carr Company purchased goods costing P500,000. The term is FOB Destination. Some…

A: Solution: cost for goods included in inventory = purchased cost of goods  = 500,000

Q: GIRLAND INC. consigned 4,800 medical equipment costing P90 and retailing for P3,000 each to ABA Co.…

A: Solution:- Calculation of how many medical equipment were sold as follows under:- According to the…

Q: Umatilla Bank and Trust is considering giving Pohl Company a loan. Before doingso, it decides that…

A: Inventory: Inventory refers to the raw materials, work-in-process, and the finished goods products…

Q: A car dealer acquires a used car for $20,000, with terms FOB shipping point. Compute total inventory…

A: Advertising, Sales staff salaries and Trimming shrubs expenses are not included in the cost of…

Q: A car dealer acquires a used car for $20,000, with terms FOB shipping point. Compute total inventory…

A: In the given situation, all costs except advertising, sales staff salaries and trimming shrubs…

Q: XYZ, Inc. sold 100 widgets to ABC, Inc. on 1/1/18 for $50 per widget on account. The sales agreement…

A: Solution 1- A potential return of any goods sold to a customer should be accounted for as per…

Q: The correct balance of the inventory after any allowance for write down is

A: Inventory is defined as the amount and quantity of goods held with the entity for the use of sale…

Q: Display cases and other store equipment costing $1,750 were purchased for cash. The original list…

A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…

Q: A solar panel dealer acquires is used panel for $9,000, with terms FOB shipping point. Compute total…

A: The cost of an asset or inventory includes all the cost that is required to bring the asset to its…

Q: The Wilson Publishing Company ships 4-volume sets of Management Encyclopedia to book dealers on…

A: Answer - 1 Calculation of an account sales to be submitted by the consignee at the end of December:…

Q: On December 28, 2020, INDIGO Company purchased goods costing 500,000. The terms were FOB…

A: Given Information :  Goods purchased = 500,000 Shipment = 10,000 Shipping = 15,000

Q: Norton Company purchased 1,000 widgets and has 200 widgets in its ending inventory at a cost of $91…

A: Inventory: It refers to the items held by an organization which were in various forms like raw…