Please do not give image format On December 31, 2020, Jen & Mink Clothing (J&M) performed the inventory count and determined the year-end ending inventoryvalue to be $82000. It is now January 8, 2021, and you have been asked to double-check the year-end inventory listing. J&M uses aperpetual inventory system. Note: Only relevant items are shown on the inventory listing.#12a.b.Jen & Mink ClothingInventory ListingDecember 31, 2020Inventory Number Inventory Description Quantity (units)764910824C.d.Blue jacketsBlack pantse.113326The following situations have been brought to your attention:a. On January 3, 2021, J&M received a shipment of 113 blue jackets, for $3,729 (Item # 7649). The inventory was purchased December23, 2020, FOB destination from Global Threads. This inventory was included in J&M's inventory count and inventory listing.b. On December 29, 2020, J&M sold scarves (Item # 5566) to a customer with a sale price of $830 and cost of $565, FOB shipping.The order was shipped on December 30, 2020. J&M has not included this inventory.c. Red Blazers (Item # 6193) were purchased and shipped from International Co. on December 30, 2020, for $3,430, FOB shipping.The shipment arrived January 5, 2021, and the appropriate party paid for the shipping charges of $450. Additional costs were $285for import duties and $86 for insurance during shipment. J&M has not included this inventory.d. At year-end, J&M is holding $9,128 of black pants (Item # 10824) on consignment for designer Duke Co. This inventory was includedin J&M's inventory count and inventory listing.e. On December 31, 2020, J&M shipped white shirts (Item # 4291), FOB destination costing $1,195 to a customer. The customer wascharged $1,400 and the customer received the goods on January 3, 2021. J&M has not included this inventory.Unit Cost ($)3328Required:1. In situations (a) to (e) determine whether inventory should be included or excluded in inventory at December 31, 2020. If theinventory should be included, determine the correct inventory cost. (Do not leave any empty spaces; input a O wherever it isrequired.)Inventory CostTotal Value ($)3,7299,128Total Inventory $82,000 2. Determine the correct ending inventory value at December 31, 2020. Starting with the unadjusted inventory value of $82,000, addor subtract any errors based on your analysis in Part 1. Assume all items that are not shown in the inventory listing are recordedcorrectly.Merchandise Inventory

The choice of inventory valuation method can have a significant impact on a company's financial…

situations (a) to (e) determine her inventory should be inc or excluded in inventory at December 31, inventory should be included, determine the correct inventory cost. (Do not leave any empty spaces; input a O wherever it is required.) Inventory Cost

situations (a) to (e) determine her inventory should be inc or excluded in inventory at December 31, inventory should be included, determine the correct inventory cost. (Do not leave any empty spaces; input a O wherever it is required.) Inventory Cost

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 9PA: On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as...

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Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a cost and net realizable value of 300,000, prepare the journal entry to record the reductions to NRV for Paul Corporation assuming that Paul uses a periodic inventory system and the allowance method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down of inventory.
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The following items were included in Venicio Corporations inventory account on December 31, 2019: What amount should Venicio report as inventory at December 31, 2019? a. 21,000 b. 20,400 c. 26,000 d. 35,000
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Olson Company adopted the dollar-value LIFO method for inventory valuation at the beginning of 2015. The following information about the inventory at the end of each year is available from Olsons records: Required: 1. Calculate the dollar-value LIFO inventory at the end of each year. 2. Prepare the appropriate disclosures for the 2021 annual report if Olson uses current cost internally and LIFO for financial reporting.
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Schmidt Company began operations on January 1, 2018, and used the LIFO inventory method for both financial reporting and income taxes. However, at the beginning of 2020, Schmidt decided to switch to the average cost inventory method for financial and income tax reporting. It had previously reported the following financial statement information for 2019: An analysis of the accounting records discloses the following cost of goods sold under the LIFO and average cost inventory methods: There are no indirect effects of the change in inventory method. Revenues for 2020 total 130,000; operating expenses for 2020 total 30,000. Schmidt is subject to a 21% income tax rate in all years; it pays all income taxes payable in the next quarter. Assume that any deferred tax liability was paid in the subsequent year. Schmidt had 10,000 shares of common stock outstanding during all years; it paid dividends of 1 per share in 2020. At the end of 2020, Schmidt had cash of 15,600, inventory of 34,000, other assets of 76,000, income taxes payable of 4,200, and accounts payable of 3,000. It desires to show financial statements for the current year and previous year in its 2020 annual report. Required: 1. Prepare the journal entry to reflect the change in method at the beginning of 2020. Show supporting calculations. 2. Prepare the 2020 financial statements. Notes to the financial statements are not necessary. Show supporting calculations.
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Grimstad Company uses FIFO for internal reporting purposes and LIFO for financial reporting and income tax purposes. At the end of 2019, the following information was obtained from the inventory records: Required: 1. Prepare the necessary adjusting journal entry assuming that Grimstad converts the accounts to LIFO at the end of 2019. 2. Indicate how Grimstad would disclose the inventory value on its comparative balance sheets prepared at the end of 2019. 3. Next Level By how much would Grimstads cost of goods sold differ in 2019 if it used FIFO for external reporting?