Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A8-3 Inventory Cost-Items to Include in Inventory (ASPE) (LO 8-1, 8-2, 8-3, 8-4) JAT is finalizing the ending inventory balance. The following information has been

image text in transcribed
A8-3 Inventory Cost-Items to Include in Inventory (ASPE) (LO 8-1, 8-2, 8-3, 8-4) JAT is finalizing the ending inventory balance. The following information has been collected: a. The goods counted in the physical inventory had a gross invoice amount of $287,000 for the goods purchased. JAT purchases primarily from one supplier and recelved the early payment discount of 2% off the purchase of the goods. b. The HST and import fee on the above purchase totalled $19,000 and $3,300, respectively. c. $33,000 of goods in transit to a retaller were excluded from the above count. The company shipped these products using FO8 destination. d. $16,000 of goods in transit to a retailer were excluded from the above count. These goods were FOB shipping point. e. Goods with a total cost of $66,000 have been shipped and recelved by various retallers. The retailers have a 60 -day return period for up to 25% of the goods purchased. These goods were excluded from the count. Historically 5% of the total goods shipped are returned. f. Cost of goods on consignment with retailers of $18,000. Total includes expected commissions of 20% to be received when the goods are sold. g. Storage costs for the inventory $4,000. Required: Determine the amount of ending inventory that should be reported on the company's SFP. A8-3 Inventory Cost-Items to Include in Inventory (ASPE) (LO 8-1, 8-2, 8-3, 8-4) JAT is finalizing the ending inventory balance. The following information has been collected: a. The goods counted in the physical inventory had a gross invoice amount of $287,000 for the goods purchased. JAT purchases primarily from one supplier and recelved the early payment discount of 2% off the purchase of the goods. b. The HST and import fee on the above purchase totalled $19,000 and $3,300, respectively. c. $33,000 of goods in transit to a retaller were excluded from the above count. The company shipped these products using FO8 destination. d. $16,000 of goods in transit to a retailer were excluded from the above count. These goods were FOB shipping point. e. Goods with a total cost of $66,000 have been shipped and recelved by various retallers. The retailers have a 60 -day return period for up to 25% of the goods purchased. These goods were excluded from the count. Historically 5% of the total goods shipped are returned. f. Cost of goods on consignment with retailers of $18,000. Total includes expected commissions of 20% to be received when the goods are sold. g. Storage costs for the inventory $4,000. Required: Determine the amount of ending inventory that should be reported on the company's SFP

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_step_2

Step: 3

blur-text-image_step3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Write a paper on Exxon Mobil Company and its fundamental analysis.

Answered: 1 week ago

Question

Identify three ways to manage an intergenerational workforce.

Answered: 1 week ago

Question

Prepare a Porters Five Forces analysis.

Answered: 1 week ago

Question

Analyze the impact of mergers and acquisitions on employees.

Answered: 1 week ago