Rondo Ltd. (RL) is a wholesaler operation, with an active warehouse. Staff at RL

Question

Rondo Ltd. (RL) is a wholesaler operation, with an active warehouse. Staff at RL have prepared a preliminary list of inventory, following its count on November 30 a. Goods counted in the physical inventory b. Provincial sales tax on the amount in a c. Federal GST on the amount in a d. Goods that arrived from a supplier on December 2, shipped FOB shipping point on $280,000 22,400 16,800 November 28 e. Goods that were shipped to a customer on November 28, shipped FOB shipping point. f. Goods that were on consignment with a customer but sold by the customer on December 43,000 51,000 14,500 1,600 10. g. Interest cost on goods in a, incurred during lengthy delivery period from supplier h. Goods that were in RL's warehouse on November 30, about to be shipped back to the i. Cost of operating and heating the warehouse facility for the year so that goods are j. Cost of freight to ship goods in a, from suppliers to RL, where RL is responsible for k. Cost of freight to ship goods from RL to customers during the year, where RL is supplier because of defects available for sale when needed freight. responsible for freight. 23,200 66,200 27,800 44,100 Required Determine the dollar amount of ending inventory Ending inventory

Explanation / Answer

a. $ 280,000 b. 22,400 c. 16,800 d. 43,000 Purchase FOB Shipping Point. Title passed to RL on Nov 28. e. ---- Sale FOB Shipping Point. Title passed to buyer on Nov 28. f. 14,500 Goods sent on consignment remains the property of consignor till they are sold. g. ---------- Borrowing costs to be excluded h. 23,200 i. ----- Not inventoriable cost j. 27,800 Inventoriable Cost k --------- Selling Expense Ending Inventory $ 427,700

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