In your audit of Steve Company, you find that a physical inventory on December 3
ID: 2569165 • Letter: I
Question
In your audit of Steve Company, you find that a physical inventory on December 31, 2017, showed merchandise with a cost of $439,670 was on hand at that date. You also discover the following items were all excluded from the $439,670.
Based on the above information, calculate the amount that should appear on Steve’s balance sheet at December 31, 2017, for inventory.
$_________________________
1. Merchandise of $65,330 which is held by Steve on consignment. The consignor is the Max Suzuki Company. 2. Merchandise costing $39,870 which was shipped by Steve f.o.b. destination to a customer on December 31, 2017. The customer was expected to receive the merchandise on January 6, 2018. 3. Merchandise costing $46,390 which was shipped by Steve f.o.b. shipping point to a customer on December 29, 2017. The customer was scheduled to receive the merchandise on January 2, 2018. 4. Merchandise costing $77,210 shipped by a vendor f.o.b. destination on December 30, 2017, and received by Steve on January 4, 2018. 5. Merchandise costing $49,210 shipped by a vendor f.o.b. shipping point on December 31, 2017, and received by Steve on January 5, 2018.Explanation / Answer
Inventory per physical count 439670 Goods in transit to customer, f.o.b. destination 39870 Goods in transit from vendor, f.o.b. shipping point 49210 Inventory as on December 31, 2017 528750
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.