Classifying Goods and Costs as Inventory or Not For each of the following items, indicate whether it would be reported as inventory in the financial statements of the seller a Freight in charges for the receipt of merchandise inventory purchased f o b shipping point AnswerCurrent asset inventoryN A b Freight out charges for delivery of merchandise to customer purchased f o b destination AnswerCurrent asset inventoryN A c Costs incurred to recall merchandise inventory due to safety issues AnswerCurrent asset inventoryN A d State sales taxes paid on merchandise inventory purchased AnswerCurrent asset inventoryN A e Insurance premiums paid on merchandise inventory held in storage AnswerCurrent asset inventoryN A f Costs to assemble purchased merchandise inventory AnswerCurrent asset inventoryN A g Expedited air shipment charge for merchandise inventory purchased due to unexpected inventory shortage AnswerCurrent asset inventoryN A

Question

Classifying Goods and Costs as Inventory or Not For each of the following items, indicate whether it would be reported as inventory in the financial statements of the seller  a   Freight in charges for the receipt of merchandise inventory purchased f o b  shipping point  AnswerCurrent asset  inventoryN A b   Freight out charges for delivery of merchandise to customer purchased f o b  destination  AnswerCurrent asset  inventoryN A c   Costs incurred to recall merchandise inventory due to safety issues  AnswerCurrent asset  inventoryN A d   State sales taxes paid on merchandise inventory purchased  AnswerCurrent asset  inventoryN A e   Insurance premiums paid on merchandise inventory held in storage  AnswerCurrent asset  inventoryN A f   Costs to assemble purchased merchandise inventory  AnswerCurrent asset  inventoryN A g   Expedited air shipment charge for merchandise inventory purchased due to unexpected inventory shortage  AnswerCurrent asset  inventoryN A

Accepted Answer

The Answer is in the image, click to view ...

a. Freight-in charges for the receipt of merchandise inventory purchased f.o.b. shipping point.	AnswerCurrent asset: inventoryN/A
b. Freight-out charges for delivery of merchandise to customer purchased f.o.b. destination.	AnswerCurrent asset: inventoryN/A
c. Costs incurred to recall merchandise inventory due to safety issues.	AnswerCurrent asset: inventoryN/A
d. State sales taxes paid on merchandise inventory purchased.	AnswerCurrent asset: inventoryN/A
e. Insurance premiums paid on merchandise inventory held in storage.	AnswerCurrent asset: inventoryN/A
f. Costs to assemble purchased merchandise inventory.	AnswerCurrent asset: inventoryN/A
g. Expedited air shipment charge for merchandise inventory purchased due to unexpected inventory shortage.	AnswerCurrent asset: inventoryN/A

Question

Classifying Goods and Costs as Inventory or Not For each of the following items, indicate whether it would be reported as inventory in the financial

Step by Step Solution

Step: 1

Get Instant Access to Expert-Tailored Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

Intermediate Accounting 2007 FASB Update Volume 1

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question