The unadjusted inventory balance of Conway Corp. is $800,000 on December 31, based on a physicalinventory count. Several items must be considered before the inventory valuation is finalized.1. On December 31, the physical inventory excluded $10,000 of merchandise inventory shipped f.o.b.destination to Conway Corp. from a vendor. The inventory arrived on January 5 of the following year.2. On December 31, the physical inventory included $1,500 of merchandise held on consignment. Theconsignor is PackagingPlus Inc.3. $75,000 of in-transit merchandise was shipped f.o.b. shipping point to a customer and was excludedfrom the physical inventory count. The merchandise was shipped on December 28 and is expected toarrive at the customer's site on December 31.4. On December 31, the physical inventory excluded $25,000 of merchandise inventory held onconsignment by a customer. Conway Corp. is the consignor.5. Goods are in transit from a vendor to Conway Corp. on December 31. The invoice cost was $40,000 andthe goods were shipped f.o.b. shipping point on December 26. The merchandise was excluded from thephysical inventory count because the merchandise had not been received.6. Merchandise with a cost of $30,000 is held in the receiving department for return, but Conway stillcontrols this inventory. The merchandise was excluded from the physical inventory count.RequiredCalculate the adjusted inventory balance on December 31.$ 845,000

Inventory is bought by the company which is further sold to customers to generate revenue. The cost…

4. On December 31, the physical inventory excluded $25,000 of merchandise inventory held on consignment by a customer. Conway Corp. is the consignor. 5. Goods are in transit from a vendor to Conway Corp. on December 31. The invoice cost was $40,000 and the goods were shipped f.o.b. shipping point on December 26. The merchandise was excluded from the physical inventory count because the merchandise had not been received. 6. Merchandise with a cost of $30,000 is held in the receiving department for return, but Conway still controls this inventory. The merchandise was excluded from the physical inventory count. Required Calculate the adjusted inventory balance on December 31. $ 845,000

4. On December 31, the physical inventory excluded $25,000 of merchandise inventory held on consignment by a customer. Conway Corp. is the consignor. 5. Goods are in transit from a vendor to Conway Corp. on December 31. The invoice cost was $40,000 and the goods were shipped f.o.b. shipping point on December 26. The merchandise was excluded from the physical inventory count because the merchandise had not been received. 6. Merchandise with a cost of $30,000 is held in the receiving department for return, but Conway still controls this inventory. The merchandise was excluded from the physical inventory count. Required Calculate the adjusted inventory balance on December 31. $ 845,000

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 4PB: The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are...

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Lower-of-cost-or market inventory Data on the physical inventory of Moyer Company as of December 31, 20Y9, are presented below. Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows: Instructions Determine the inventory at cost and at the lower of cost or market, using the first-in, first-out method. Record the appropriate unit costs on an inventory sheet and complete the pricing of the inventory. When there are two different unit costs applicable to an item, proceed as follows: 1. Draw a line through the quantity, and insert the quantity and unit cost of the last purchase. 2. On the following line, insert the quantity and unit cost of the next-to-the-last purchase. 3. Total the cost and market columns and insert the lower of the two totals in the LCM column. The first item on the inventory sheet has been completed below as an example.
On December 31, Marchant Company took a physical count of its merchandise inventory. It operates under the perpetual inventory system. The physical count amounted to 185,294. The Merchandise Inventory account shows a balance of 187,936. Journalize the adjusting entry.
Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of 250,000. During the year, it made 613,000 of net purchases. At the end of the year, a physical inventory showed it had ending inventory of 140,000. Calculate Reid Companys cost of goods sold for the year.
Basga Company uses the periodic inventory system. Beginning inventory amounted to 241,072. A physical count reveals that the latest inventory amount is 256,339. Record the adjusting entries, using T accounts.
On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as follows: Instructions 1. Does Wyman Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 2019. The merchandise inventory as of December 31, 2019, was 305,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was 30,000. 3. Prepare the closing entries for Wyman Company as of December 31, 2019. 4. What would the net income have been if the perpetual inventory system had been used?
Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a cost and net realizable value of 300,000, prepare the journal entry to record the reductions to NRV for Paul Corporation assuming that Paul uses a periodic inventory system and the allowance method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down of inventory.
On December 31, Pitts Manufacturing Company reports the following assets: What is the total amount of Pitts inventory at year-end?
On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as follows: Instructions 1. Does Simkins Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 2019. The merchandise inventory as of June 30, 2019, was 508,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was 33,000. 3. Prepare the closing entries for Simkins Company as of June 30, 2019. 4. What would the net income have been if the perpetual inventory system had been used?
Data on the physical inventory of Ashwood Products Company as of December 31 follow: Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows: Instructions Determine the inventory at cost as well as at the lower of cost or market, using the first-in, first-out method. Record the appropriate unit costs on the inventory sheet and complete the pricing of the inventory. When there are two different unit costs applicable to an item, proceed as follows: 1. Draw a line through the quantity and insert the quantity and unit cost of the last purchase. 2. On the following line, insert the quantity and unit cost of the next-to-the-last purchase. 3. Total the cost and market columns and insert the lower of the two totals in the Lower of C or M column. The first item on the inventory sheet has been completed as an example.
The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are shown in Problem 7-1B. Instructions 1. Determine the inventory on June 30 and the cost of merchandise sold for the three-month period, using the first-in, first-out method and the periodic inventory system. 2. Determine the inventory on June 30 and the cost of merchandise sold for the three-month period, using the last-in, first-out method and the periodic inventory system. 3. Determine the inventory on June 30 and the cost of merchandise sold for the three-month period, using the weighted average cost method and the periodic inventory system. Round the weighted average unit cost to the dollar. 4. Compare the gross profit and June 30 inventories using the following column headings:
Pappas Appliances uses the periodic inventory system. Details regarding the inventory of appliances at January 1, purchases invoices during the year, and the inventory count at December 31 are summarized as follows: Instructions 1. Determine the cost of the inventory on December 31 by the first-in, first-out method. Present data in columnar form, using the following headings: If the inventory of a particular model comprises one entire purchase plus a portion of another purchase acquired at a different unit cost, use a separate line for each purchase. 2. Determine the cost of the inventory on December 31 by the last-in, first-out method, following the procedures indicated in (1). 3. Determine the cost of the inventory on December 31 by the weighted average cost method, using the columnar headings indicated in (1). 4. Discuss which method (FIFO or LIFO) would be preferred for income tax purposes in periods of (a) rising prices and (b) declining prices.
Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the October 22 purchase, (b) the cost of goods sold on October 29, and (c) the inventory on October 31.