Question
1-In your audit of Morgan Company, you find that a physical inventory on December 31, 2017, showed merchandise with a cost of $445,530 was on
1-In your audit of Morgan Company, you find that a physical inventory on December 31, 2017, showed merchandise with a cost of $445,530 was on hand at that date. You also discover the following items were all excluded from the $445,530.
1. | Merchandise of $55,190 which is held by Morgan on consignment. The consignor is the Max Suzuki Company. | |
2. | Merchandise costing $40,830 which was shipped by Morgan 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 $48,740 which was shipped by Morgan 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 $75,050 shipped by a vendor f.o.b. destination on December 30, 2017, and received by Morgan on January 4, 2018. | |
5. | Merchandise costing $49,450 shipped by a vendor f.o.b. shipping point on December 31, 2017, and received by Morgan on January 5, 2018. |
Based on the above information, calculate the amount that should appear on Morgans balance sheet at December 31, 2017, for inventory.
Inventory as on December 31, 2017 |
2- Pina Company has used the dollar-value LIFO method for inventory cost determination for many years. The following data were extracted from Pinas records.
Price Index | Ending Inventory at Base Prices | Ending Inventory at Dollar-Value LIFO |
| |||
December 31, 2017 | 105 | $92,490 | $85,600 | |||
December 31, 2018 | ? | 97,490 | 91,200 |
Calculate the index used for 2018 that yielded the above results.
Index used for 2018 |
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