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On April 30, 2021, Chen's Antique Fumiture year end, a physical count was taken of the inventory on hand in both the worehouse ond the

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On April 30, 2021, Chen's Antique Fumiture year end, a physical count was taken of the inventory on hand in both the worehouse ond the retail store area for the purpose of determining cost of goods sold and ending inventory value. The warehouse manager shows a total inventory on hond of $518,000. The following are items that the warehouse manager noted on a separate sheet. None of these items are currently part of the final inventory listing because the manager was not sure how they should be treated for inventory purposes. a) On Apr 30, Chen shipped an order to a customer. FOB shipping point. The cost of the goods shipped is $6.550. Freight, which is to be paid by the appropriate party, will cost $275. b) On April 30 a customer visited Chen's shop and selected a desk that she wanted to purchase and paid for it in ful. The soles price of the desk was $4,500, and the cost was $2,900. The customer intends to send a truck to pick up the desk no later than May 2. The freight will cost $150 and will be paid by the customer. A "Sold" sign has been placed on the desk but it is still on display in the store. c) In Chen's warehouse is furniture costing $17.000 that was purchased in April and needs to be returned. The goods were special ordered for a customer who has since decided not to buy them after all. Chen's supplier hos agreed to occept return of the goods and will allow a full credit on Chen's account as soon as they are received. A freight company is scheduled to pick up the merchandise on the moming of May 1, and so they have been set aside near the loading dock. The freight, which will be paid by the customer as a fee for the cancellation is to cost $400. d) Chen sells some of its merchandise in smaller towns by placing samples on consignment with local hardware stores. The manager noted that 12 desks at a cost of $1.000 each and 25 chairs at $95 each are currently out on consignment. e) On May 2. a freight company delivered goods that cost $45.000 to Chen's warehouse. The goods had been shipped by the vendor on April 29. FOB destination, Freight on this shipment will amount to $500 and will be paid by the appropriate party Instructions: Calculate the correct inventory balance at April 30, 2018. For each of the above items, explain the basis of your treatment of the item. [11 marks) $ Change in Inventory Reason (write a brief sentence) Beginning Inventory Balance a) b) c) d e a) Adjusted Inventory balance On April 30, 2021, Chen's Antique Fumiture year end, a physical count was taken of the inventory on hand in both the worehouse ond the retail store area for the purpose of determining cost of goods sold and ending inventory value. The warehouse manager shows a total inventory on hond of $518,000. The following are items that the warehouse manager noted on a separate sheet. None of these items are currently part of the final inventory listing because the manager was not sure how they should be treated for inventory purposes. a) On Apr 30, Chen shipped an order to a customer. FOB shipping point. The cost of the goods shipped is $6.550. Freight, which is to be paid by the appropriate party, will cost $275. b) On April 30 a customer visited Chen's shop and selected a desk that she wanted to purchase and paid for it in ful. The soles price of the desk was $4,500, and the cost was $2,900. The customer intends to send a truck to pick up the desk no later than May 2. The freight will cost $150 and will be paid by the customer. A "Sold" sign has been placed on the desk but it is still on display in the store. c) In Chen's warehouse is furniture costing $17.000 that was purchased in April and needs to be returned. The goods were special ordered for a customer who has since decided not to buy them after all. Chen's supplier hos agreed to occept return of the goods and will allow a full credit on Chen's account as soon as they are received. A freight company is scheduled to pick up the merchandise on the moming of May 1, and so they have been set aside near the loading dock. The freight, which will be paid by the customer as a fee for the cancellation is to cost $400. d) Chen sells some of its merchandise in smaller towns by placing samples on consignment with local hardware stores. The manager noted that 12 desks at a cost of $1.000 each and 25 chairs at $95 each are currently out on consignment. e) On May 2. a freight company delivered goods that cost $45.000 to Chen's warehouse. The goods had been shipped by the vendor on April 29. FOB destination, Freight on this shipment will amount to $500 and will be paid by the appropriate party Instructions: Calculate the correct inventory balance at April 30, 2018. For each of the above items, explain the basis of your treatment of the item. [11 marks) $ Change in Inventory Reason (write a brief sentence) Beginning Inventory Balance a) b) c) d e a) Adjusted Inventory balance

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