introduct ion t. I Blank page Chegg Study v2.cengagenow.com/ilm/takeAssignment/t

Question

introduct ion t. I Blank page Chegg Study v2.cengagenow.com/ilm/takeAssignment/takessignmentMain.do?invok assignments&takeAss; enisessonlocatcr assignment-take&inprogress; ignm m | Engagement Exerc eBook Calculator Ending Inventory Costs owns a small specialty store, named Chen's Chattel, whose year-end is June 30. A physical inventory taken on June 30 reveals the following Cost of merchandise on the showroom floor and in the warehouse Goods held on consignment (consignor is National Manufacturer Goods that Chen's Chattel, as the consignor, has for sale at the location of the Grand Avenue Vista Sales invoices indicate that merchandise was shipped on June 29, terms FOB shipping point, delivered at buyer's $36,800 4,600 3,800 receiving dock on July 3 Sales invoices indicate that merchandise was shipped on June 25, terms FOB destination, delivered at buyer's receiving dock on July 5 3,100 Determine the total amount that should be included in Chen's Chattel's year-end inventory 38, 1001 x Check My Work FOB destination and FOB shipping point can be confusing when describing the terms of goods in transit. FOB means "free on board." of course, destination means where the ooods are going (the buyer) and shipping point is where the oods are being shipped from (the seller). If the goods are being shipped FOB destination, the shipping costs are paid by the seller, thus "free" to the buyer. Since the seller is paying for the shipping, the seller owns and is responsible for the goods until accepted by the buyer. The opposite is true for FOB shipping point. Previous Next

Explanation / Answer

Cost of merchandise on showroom and warehouse 36800 Less Goods held on consignment -6400 add Goods as consignor 4600 Less Goods in transit FOB shipping point -3800 Add Good in transit FOB destination 3100 Year end inventory balance 34300

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.