Determining Merchandise to Be Included or Excluded from Ending Inventory The unadjusted inventory balance of Ultim Corp. is $280,000 on December 31 based on a physical inventory count. Th following items must be considered before the inventory valuation is finalized. a. On December 31, the physical inventory excluded $700 of merchandise inventory set aside for expected shipmen to a customer. b. On December 31, the physical inventory excluded $2,800 of merchandise inventory out on consignment in a customer's showroom. c. On December 31, the physical inventory excluded $2,240 of merchandise held on consignment. d. In transit merchandise of $2,100 was shipped f.o.b. destination to a customer and was excluded from the physical inventory count. T merchandise was turned over to a common carrier on December 28 and is delivered to the customer on December 31. e. Ultim Corp. ordered $2,240 of merchandise on December 26. The merchandise was shipped to Ultim Corp. f.o.b. shipping point on December 30 and was expected to arrive January 2 of next year. The merchandise was not included in the physical inventory count. f. A return to a vendor of merchandise for $2,800 was in transit on December 31 and was excluded from the physical inventory count. The merchandise was shipped f.o.b. shipping point December 30. Required Review items a through f and determine the adjusted inventory balance for year - end December 31.
Determining Merchandise to Be Included or Excluded from Ending Inventory The unadjusted inventory balance of Ultim Corp. is $280,000 on December 31 based on a physical inventory count. Th following items must be considered before the inventory valuation is finalized. a. On December 31, the physical inventory excluded $700 of merchandise inventory set aside for expected shipmen to a customer. b. On December 31, the physical inventory excluded $2,800 of merchandise inventory out on consignment in a customer's showroom. c. On December 31, the physical inventory excluded $2,240 of merchandise held on consignment. d. In transit merchandise of $2,100 was shipped f.o.b. destination to a customer and was excluded from the physical inventory count. T merchandise was turned over to a common carrier on December 28 and is delivered to the customer on December 31. e. Ultim Corp. ordered $2,240 of merchandise on December 26. The merchandise was shipped to Ultim Corp. f.o.b. shipping point on December 30 and was expected to arrive January 2 of next year. The merchandise was not included in the physical inventory count. f. A return to a vendor of merchandise for $2,800 was in transit on December 31 and was excluded from the physical inventory count. The merchandise was shipped f.o.b. shipping point December 30. Required Review items a through f and determine the adjusted inventory balance for year - end December 31.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 7PB: Selected data on merchandise inventory, purchases, and sales for Jaffe Co. and Coronado Co. are as...
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Transcribed Image Text:Determining Merchandise to Be Included or Excluded from Ending Inventory The unadjusted inventory balance of Ultim Corp. is $280,000 on December 31 based on a physical inventory count. The
following items must be considered before the inventory valuation is finalized. a. On December 31, the physical inventory excluded $700 of merchandise inventory set aside for expected shipment
to a customer. b. On December 31, the physical inventory excluded $2,800 of merchandise inventory out on consignment in a customer's showroom. c. On December 31, the physical inventory
excluded $2,240 of merchandise held on consignment. d. In-transit merchandise of $2,100 was shipped f.o.b. destination to a customer and was excluded from the physical inventory count. The
merchandise was turned over to a common carrier on December 28 and is delivered to the customer on December 31. e. Ultim Corp. ordered $2,240 of merchandise on December 26. The
merchandise was shipped to Ultim Corp. f.o.b. shipping point on December 30 and was expected to arrive January 2 of next year. The merchandise was not included in the physical inventory
count. f. A return to a vendor of merchandise for $2,800 was in transit on December 31 and was excluded from the physical inventory count. The merchandise was shipped f.o.b. shipping point on
December 30. Required Review items a through fand determine the adjusted inventory balance for year-end December 31.
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