Sheffield Company took a physical inventory on December 31 and determined that goods costing S 210,000 were on hand. Not included in the physical count were $ 25,000 of goods purchased from Pelzer Corporation, FOB shipping point, and $ 21,500 of goods sold to Alvarez Company for $ 29,500 FOB destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Sheffield report as its December 31 inventory? Sheffield ending Inventory

Sheffield Company took a physical inventory on December 31 and determined that goods costing S 210,000 were on hand. Not included in the physical count were $ 25,000 of goods purchased from Pelzer Corporation, FOB shipping point, and $ 21,500 of goods sold to Alvarez Company for $ 29,500 FOB destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Sheffield report as its December 31 inventory? Sheffield ending Inventory

Name: Sheffield Company took a physical inventory on December 31 and determ
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Description: Sheffield Company took a physical inventory on December 31 and determined that goods costing $ 210,000 were on hand. Notincluded in the physical count were $ 25,000 of goods purchased from Pelzer Corporation, FOB shipping point, and $ 21,500 ofgoods

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 12RE: Carla Company uses the perpetual inventory system. The following information is available for...

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Hurst Companys beginning inventory and purchases during the fiscal year ended December 31, 20-2, were as follows: There are 1,200 units of inventory on hand on December 31, 20-2. REQUIRED 1. Calculate the total amount to be assigned to the cost of goods sold for 20-2 and ending inventory on December 31 under each of the following periodic inventory methods: (a) FIFO (b) LIFO (c) Weighted-average (round calculations to two decimal places) 2. Assume that the market price per unit (cost to replace) of Hursts inventory on December 31 was 18. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods: (a) FIFO lower-of-cost-or-market (b) Weighted-average lower-of-cost-or-market 3. In addition to taking a physical inventory on December 31, Hurst decides to estimate the ending inventory and cost of goods sold. During the fiscal year ended December 31, 20-2, net sales of 100,000 were made at a normal gross profit rate of 35%. Use the gross profit method to estimate the cost of goods sold for the fiscal year ended December 31 and the inventory on December 31.
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On January 1 of Year 1, Dorso Company adopted the dollar-value LIFO method of inventory costing. Dorsos December 31 ending inventory records are as follows: Year 1: Current cost, 20,000; Index, 100 Year 2: Current cost, 33,600; Index, 120 Using the dollar-value LIFO method, compute Dorsos December 31 ending inventory for Year 2.
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