Empty Company reported inventory on December 31, 2019 at 2,500,000 based on physical count priced at cost and before any necessary adjustment for the following: a. Merchandise costing 100,000, shipped FOB shipping point from a vendor on December 30, 2019 was received and recorded on January 5, 2020. (add or deduct) b. Goods in the shipping area were excluded from inventory although shipment was not made until January 5, 2020. The goods billed to the customer FOB shipping point on December 30, 2019 had a cost of 400,000. (add or deduct) "What amount should be reported as inventory on December 31, 2019?
Empty Company reported inventory on December 31, 2019 at 2,500,000 based on physical count priced at cost and before any necessary adjustment for the following: a. Merchandise costing 100,000, shipped FOB shipping point from a vendor on December 30, 2019 was received and recorded on January 5, 2020. (add or deduct) b. Goods in the shipping area were excluded from inventory although shipment was not made until January 5, 2020. The goods billed to the customer FOB shipping point on December 30, 2019 had a cost of 400,000. (add or deduct) "What amount should be reported as inventory on December 31, 2019?
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
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 6E: Goods in Transit Gravais Company made two purchases on December 29, 2019. One purchase for 3,000 was...
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