https://newc ion.com/flow/connect.html CT y of Cen. Chapter 08 Pre-Built Proble.

ID: 2439405 • Letter: H

Question

https://newc ion.com/flow/connect.html CT y of Cen. Chapter 08 Pre-Built Proble.. . * ll, Add, or Drop Classes The Kwok Compay's Inventory baiance on December 3t, 2018, was $100,000 (based on a 12.31s physical count) bertore considering the toilowng transactons 1. Goods shipped to Kwok f.o.b. destination on December 20, 2018, were recelved on January 4, 2019. The Ivokce cost was $33,000. 2 Goods shipped to Kwok t.o.b. shipping point on December 28, 2018, were recelved on January S, 2019. The Invoice cost was $20,000. 3. Goods snipped niom Kowok to a customer to b. cestnution on Decenber 27,2018, were recetved by the customer on January s 2019. The sales price was $43,000 and the merchandise cost $25,000. 4. Goods shipped from Kwok to a customer tob. destinaton on December 26, 2018, were recetved by the customer on December 30, 2018. The sales pnice was $23,000 and the merchandise cost $16,000. . Goods shipped from Kwok to a customer t.o.b. shipping point on December 28, 2018, were received by the customer on January 4, 2019. The saies price was $28,000 and the merchandise cost $15,000. Required Denermine the correct Inventory amount to be reported in Kwok's 2018 balance sheet

Explanation / Answer

Solution: $235,000

Working:

Inventory balance before adjusting transactions

190,000

Plus:

Goods shipped to Kwok f.o.b. shipping point on dt Dec-28

20,000

Goods shipped to customer f.o.b. destination on Dec-27

25,000

Correct inventory balance

235,000