INTERMEDIATE ACTG+CONNECT <LOOSE>
9th Edition
ISBN: 9781260517125
Author: SPICELAND
Publisher: MCGRAW-HILL CUSTOM PUBLISHING
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Textbook Question
Chapter 8, Problem 8.7E
Goods in transit; consignment
• LO8–2
The December 31, 018, year-end inventory balance of the Raymond Corporation is $210,000. You have been asked to review the following transactions to determine if they have been correctly recorded.
1. Goods shipped to Raymond f.o.b. destination on December 26, 2018, were received on January 2, 2019. The invoice cost of $30,000 is included in the preliminary inventory balance.
2. At year-end, Raymond held $14,000 of merchandise on consignment from the Harrison Company. This merchandise is included in the preliminary inventory balance.
3. On December 29, merchandise costing $6,000 was shipped to a customer f.o.b. shipping point and arrived at the customer’s location on January 3, 2019. The merchandise is not included in the preliminary inventory balance.
4. At year-end, Raymond had merchandise costing $15,000 on consignment with the Joclyn Corporation. The merchandise is not included in the preliminary inventory balance.
Required:
Determine the correct inventory amount to be reported in Raymond’s 2018
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PROBLEM 6: XXX Company is preparing its 2021 financial statements. Prior to any adjustments, inventory is valued at P1,605,000. The following information has been found relating to certaininventory transactions from your cut-off test:
A. Goods valued at P110,000 are on consignment with a customer. These goods werenot included in the ending inventory figure.
B.Goods costing P87,000 were received from a vendor on January 5, 2022. The relatedinvoice was received and recorded on January 12, 2022. The goods were shippedonDecember 31, 2021, terms FOB shipping point.
C. Goods costing P85,000, sold for P102,000, were shipped on December 31, 2021, andwere delivered to the customer on January 2, 2022. The terms of the invoice wereFOBshipping point. The goods were included in the ending inventory for 2021 and thesalewas recorded in 2022.
D. A P35,000 shipment of goods to a customer on December 31, terms FOB destinationwas not included in the year-end inventory. The goods cost P26,000…
Problem 10-23 (IAA)
A physical count on December 31, 2021 revealed that Joy
Company had inventory with a cost of P4,410,000.
The following items were excluded from this amount:
• Merchandise of P610,000 is held by Joy Company on
consignment.
• Merchandise costing P380,000 was shipped by Joy
Company FOB destination to a customer on December
31, 2021.
The customer was expected to receive the goods on
January 5, 2022.
* Merchandise costing P460,000 was shipped by Joy
Company FOB shipping point to a customer on December
29, 2021.
The customer was expected to receive the goods on
January 10, 2022.
Merchandise costing P830,000 ahipped by a vendor FOB
destination on December 31, 2021 was received by Joy
Company on January 15, 2022.
Merchandise costing P510,000 purchased FOB shipping
point was shipped by the supplier on December 31, 2021
and received by Joy on January 5, 2022.
What amount of inventory ahould be reported on December
31, 2021?
a. 5,300,000
b. 4,690,000
e. 3,800,000
d.
4,920,000
Exercise 8-7 (Algo) Goods in transit; consignment [LO8-2]
The December 31, 2021, year-end inventory balance of the Raymond Corporation is $234,000. You have been asked to review the
following transactions to determine if they have been correctly recorded.
1. Goods shipped to Raymond f.o.b. destination on December 26, 2021, were received on January 2, 2022. The invoice cost of
$42,000 is included in the preliminary inventory balance.
2. At year-end, Raymond held $26,000 of merchandise on consignment from the Harrison Company. This merchandise is included in
the preliminary inventory balance.
3. On December 29, merchandise costing $7,200 was shipped to a customer f.o.b. shipping point and arrived at the customer's
location on January 3, 2022. The merchandise is not included in the preliminary inventory balance.
4. At year-end, Raymond had merchandise costing $27,000 on consignment with the Joclyn Corporation. The merchandise is not
included in the preliminary inventory balance.
Required:…
Chapter 8 Solutions
INTERMEDIATE ACTG+CONNECT <LOOSE>
Ch. 8 - Describe the three types of inventory of a...Ch. 8 - What is the main difference between a perpetual...Ch. 8 - The Cloud Company employs a perpetual inventory...Ch. 8 - The Bockner Company shipped merchandise to Laetner...Ch. 8 - What is a consignment arrangement? Explain the...Ch. 8 - Prob. 8.6QCh. 8 - The Esquire Company employs a periodic inventory...Ch. 8 - Prob. 8.8QCh. 8 - Its common in the electronics industry for unit...Ch. 8 - Explain why proponents of LIFO argue that it...
Ch. 8 - Prob. 8.11QCh. 8 - Describe the ratios used by financial analysts to...Ch. 8 - Prob. 8.13QCh. 8 - Prob. 8.14QCh. 8 - The Austin Company uses the dollar-value LIFO...Ch. 8 - Identify any differences between U.S. GAAP and...Ch. 8 - Determining ending inventory; periodic system ...Ch. 8 - Prob. 8.2BECh. 8 - Prob. 8.3BECh. 8 - Purchas e discounts; gross method LO83 On...Ch. 8 - Prob. 8.5BECh. 8 - Prob. 8.6BECh. 8 - Inventor y cost flow methods; perpetual system ...Ch. 8 - LIFO method LO84 Esquire Inc. uses the LIFO...Ch. 8 - LIFO method LO84 AAA Hardware uses the LIFO...Ch. 8 - LIFO liquidation LO86 Refer to the situation...Ch. 8 - Prob. 8.11BECh. 8 - Ratio analysis LO87 Selected financial statement...Ch. 8 - Dollar-value LIFO LO88 At the beginning of 2018,...Ch. 8 - Perpetual inventory system; journal entries LO81...Ch. 8 - Prob. 8.2ECh. 8 - Determining cost of goods sold; periodic inventory...Ch. 8 - Perpetual and periodic inventory systems compared ...Ch. 8 - Prob. 8.6ECh. 8 - Goods in transit; consignment LO82 The December...Ch. 8 - Physical quantities and costs included in...Ch. 8 - Prob. 8.9ECh. 8 - Prob. 8.10ECh. 8 - Prob. 8.11ECh. 8 - FASB codification research LO82, LO83 Access the...Ch. 8 - Inventory cost flow methods; periodic system ...Ch. 8 - Inventory cost flow methods; perpetual system ...Ch. 8 - Comparison of FIFO and LIFO; periodic system ...Ch. 8 - Average cost method; periodic and perpetual...Ch. 8 - FIFO, LIFO, and average cost methods LO81, LO84...Ch. 8 - Supplemental LIFO disclosures; LIFO reserve; AEP...Ch. 8 - LIFO liquidation LO81, LO84, LO86 The Reuschel...Ch. 8 - Dollar-value LIFO LO88 On January 1, 2018, the...Ch. 8 - Dollar-value LIFO LO88 Mercury Company has only...Ch. 8 - Dollar-value LIFO LO88 Carswell Electronics...Ch. 8 - Concepts; terminology LO81 through LO85 Listed...Ch. 8 - Various inventory transactions; journal entries ...Ch. 8 - Prob. 8.2PCh. 8 - Prob. 8.4PCh. 8 - Various inventory costing methods LO81, LO84...Ch. 8 - Various inventory costing methods LO81, LO84...Ch. 8 - Supple mental LIFO disclosures; Caterpillar LO84,...Ch. 8 - LIFO liquidation LO84, LO86 Taylor Corporation...Ch. 8 - LIFO liquidation LO84, LO86 Cansela Corporation...Ch. 8 - Prob. 8.11PCh. 8 - Integrating problem; inventories and accounts...Ch. 8 - Dollar-value LIFO LO88 On January 1, 2018, the...Ch. 8 - Dollar-value LIFO LO88 Kingston Company uses the...Ch. 8 - Dollar-value LIFO LO88 On January 1, 2018,...Ch. 8 - Prob. 8.1BYPCh. 8 - Real World Case 82 Physical quantities and costs...Ch. 8 - Judgment Case 83 The specific identification...Ch. 8 - Prob. 8.4BYPCh. 8 - Prob. 8.5BYPCh. 8 - Judgment Case 86 Goods in transit LO82 At the end...Ch. 8 - Ethics Case 87 Profit manipulation LO84 In 2017...Ch. 8 - Real World Case 88 Effects of inventory valuation...Ch. 8 - Real World Case 89 Effects of inventory valuation...Ch. 8 - Communication Case 810 Dollar-value LIFO method ...Ch. 8 - Prob. 8.11BYPCh. 8 - Prob. 8.CCTCCh. 8 - Prob. CCIFRS
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