before audit adjustments rchases for year ended June 30, 202C before audit adjustments Shipments' received in May and inclu physical inventory but recorded as Ju Shipments received in unsalable cond excluded from physical inventory. Cre had not been received nor had charge vendors been recorded: Total at May 31, 2020 Total at June 30, 2020, including unrecorded chargebacks Deposit made with vendor and charge in April, 2020. Product was shipped in Deposit made with vendor and charge in May, 2020. Product was shipped FC on May 29, 2020 and was included in physical inventory as goods in tuo
before audit adjustments rchases for year ended June 30, 202C before audit adjustments Shipments' received in May and inclu physical inventory but recorded as Ju Shipments received in unsalable cond excluded from physical inventory. Cre had not been received nor had charge vendors been recorded: Total at May 31, 2020 Total at June 30, 2020, including unrecorded chargebacks Deposit made with vendor and charge in April, 2020. Product was shipped in Deposit made with vendor and charge in May, 2020. Product was shipped FC on May 29, 2020 and was included in physical inventory as goods in tuo
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 6E: Inventory Write-Down The inventories of Berry Company for the years 2019 and 2020 are as follows:...
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Question
![at an interim date, May 31, 2020, instead of at year end.
ended June 30, 2020, the CPA observed the physical inventory
In conducting an audit of Ultimate Company for the year
The following information was obtained from the general
Problem 13-14 (AICPA Adapted)
for
the
year
ledger.
875,000
950,000
8,400,000
9,600,000
Inventory, July 1, 2019
Physical inventory, May 31, 2020
Sales for 11 months ended May 31, 2020
Sales for year ended June 30, 2020
Purchases for 11 months ended May 31, 2020
before audit adjustments
Purchases for year ended June 30, 2020
before audit adjustments
6.
6,750,000
8,000,000
1. Shipments' received in May and included in the
physical inventory but recorded as June purchases
75,000
b. Shipments received in unsalable condition and
excluded from physical inventory. Credit memos
had not been received nor had chargebacks to
vendors been recorded:
10,000
Total at May 31, 2020
Total at June 30, 2020, including the May
unrecorded chargebacks
15,000
c. Deposit made with vendor and charged to purchases
in April, 2020. Product was shipped in July, 2020
20,000
d. Deposit made with' vendor and charged to purchases
in May, 2020. Product was shipped FOB destination,
on May 29, 2020 and was included in May 31, 2020
physical inventory as goods in transit
55,000
e. Through the carelessness of the receiving department
a June shipment was damaged by rain. This shipment
was later sold in June at its cost of
100,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdd85fed6-94f4-4498-9dfa-461da81ca851%2Ff5d7b721-df03-4bcf-98e1-9de150aa8332%2F6hrxndd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:at an interim date, May 31, 2020, instead of at year end.
ended June 30, 2020, the CPA observed the physical inventory
In conducting an audit of Ultimate Company for the year
The following information was obtained from the general
Problem 13-14 (AICPA Adapted)
for
the
year
ledger.
875,000
950,000
8,400,000
9,600,000
Inventory, July 1, 2019
Physical inventory, May 31, 2020
Sales for 11 months ended May 31, 2020
Sales for year ended June 30, 2020
Purchases for 11 months ended May 31, 2020
before audit adjustments
Purchases for year ended June 30, 2020
before audit adjustments
6.
6,750,000
8,000,000
1. Shipments' received in May and included in the
physical inventory but recorded as June purchases
75,000
b. Shipments received in unsalable condition and
excluded from physical inventory. Credit memos
had not been received nor had chargebacks to
vendors been recorded:
10,000
Total at May 31, 2020
Total at June 30, 2020, including the May
unrecorded chargebacks
15,000
c. Deposit made with vendor and charged to purchases
in April, 2020. Product was shipped in July, 2020
20,000
d. Deposit made with' vendor and charged to purchases
in May, 2020. Product was shipped FOB destination,
on May 29, 2020 and was included in May 31, 2020
physical inventory as goods in transit
55,000
e. Through the carelessness of the receiving department
a June shipment was damaged by rain. This shipment
was later sold in June at its cost of
100,000
![1. What is the amount of gross profit for the eleven months
ended May 31, 2020?
a. 1,680,000
b. 1,725,000
с. 1,735,000
d. 1,670,000
- 2. What is the amount of sales for the month of June?
a. 1,100,000
b. 1,200,000
c. 1,300,000
d. 1,400,000
3. What is the cost of goods sold for the month of June ?
a. 960,000
b. 880,000
c. 980,000
d. 950,000
4. What is the inventory on June 30, 2020?
a. 1,160,000
b. 1,240,000
c. 1,340,000
d. 1,140,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdd85fed6-94f4-4498-9dfa-461da81ca851%2Ff5d7b721-df03-4bcf-98e1-9de150aa8332%2Fm1j9g6o_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. What is the amount of gross profit for the eleven months
ended May 31, 2020?
a. 1,680,000
b. 1,725,000
с. 1,735,000
d. 1,670,000
- 2. What is the amount of sales for the month of June?
a. 1,100,000
b. 1,200,000
c. 1,300,000
d. 1,400,000
3. What is the cost of goods sold for the month of June ?
a. 960,000
b. 880,000
c. 980,000
d. 950,000
4. What is the inventory on June 30, 2020?
a. 1,160,000
b. 1,240,000
c. 1,340,000
d. 1,140,000
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