Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Any help would be appreciated. I am looking for an app to help me with accounting questions to help answer. The Ayayai Company has just

image text in transcribed

Any help would be appreciated. I am looking for an app to help me with accounting questions to help answer.

image text in transcribed
The Ayayai Company has just completed a physical inventory count at year end, December 31, 2022. Only the items on the shelves, in storage, and in the receiving area were counted and costed on the FIFO basis. The inventory amounted to $ 84,500. During the audit, the independent CPA discovered the following additional information: There were goods in transit on December 31, 2022, from a supplier with terms FOB destination, costing $ 9,900. Because the goods had not arrived, they were excluded from the physical inventory count. On December 27, 2022, a regular customer purchased goods for cash amounting to $ 1,200 and had them shipped to a bonded warehouse for temporary storage on December 28, 2022. The goods were shipped via common carrier with terms FOB shipping point. The customer picked the goods up from the warehouse on January 4, 2023. Ayayai Company had paid $ 600 for the goods and. because they were in storage, Ayayai included them in the physical inventory count. Ayayal Company, on the date of the inventory, received notice from a supplier that goods ordered earlier. at a cost of $ 3.300, had been delivered to the transportation company on December 28, 2022: the terms were FOB shipping point. Because the shipment had not arrived on December 31, 2022, it was excluded from the physical inventory. On December 31 2022, there were goods in transit to customers, with terms FOB shipping point, amounting to $ 850 (expected delivery on January 8. 2023). Because the goods had been shipped, they were excluded from the physical inventory count. On December 31, 2022. Avayal Company shipped $ 2.300 worth of goods to a customer FOB destination. The goods arrived on January 5, 2023. Because the goods were not on hand, they were not included in the physical inventory count. Ayayai Company as the consignee. had goods on consignment that cost $ 3.000. Because these goods were on hand as of December 31, 2022. they were included in the physical inventory count. Analyze the above information and calculate a corrected amount for the ending inventory. Corrected inventory $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Managerial Accounting Tools for Business Decision Making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly

4th Canadian edition

978-1118856994

Students also viewed these Accounting questions