The physical inventory of Nanika, Inc. as of December 26, 2016, totaled P945,000. You agreed on the December 26 count as the company has a good internal control system. In trying to establish the December 31 inventory, you noted the following transactions from December 27 to December 31, 2016: Sales (30% markup on cost) 390,000.00 Credit memos issued: For good returned on: 15-Dec 10,800.00 18,000.00 15,600.00 20-Dec 29-Dec For goods delivered to customers not in accordance with specifications 3,600.00 Credit memos received: For good returned on: 10-Dec 5,400.00 4,200.00 6,000.00 26-Dec 28-Dec Purchases Placed in stock 90,000.00 In transit, FOB Shipping point In transit, FOB Destination 124,500.00 39,000.00 Requirement: Compute for the inventory balance on December 31, 2016.

The physical inventory of Nanika, Inc. as of December 26, 2016, totaled P945,000. You agreed on the December 26 count as the company has a good internal control system. In trying to establish the December 31 inventory, you noted the following transactions from December 27 to December 31, 2016: Sales (30% markup on cost) 390,000.00 Credit memos issued: For good returned on: 15-Dec 10,800.00 18,000.00 15,600.00 20-Dec 29-Dec For goods delivered to customers not in accordance with specifications 3,600.00 Credit memos received: For good returned on: 10-Dec 5,400.00 4,200.00 6,000.00 26-Dec 28-Dec Purchases Placed in stock 90,000.00 In transit, FOB Shipping point In transit, FOB Destination 124,500.00 39,000.00 Requirement: Compute for the inventory balance on December 31, 2016.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 33BE

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