Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On December 3 1 , 2 0 2 0 , Jen & Mink Clothing ( J&M ) performed the inventory count and determined the year
On December Jen & Mink Clothing J&M performed the inventory count and determined the yearend ending inventory
value to be $ It is now January and you have been asked to doublecheck the yearend inventory listing. J&M uses a
perpetual inventory system. Note: Only relevant items are shown on the inventory listing.
The following situations have been brought to your attention:
a On January J&M received a shipment of blue jackets, for $Item # The inventory was purchased December
FOB destination from Global Threads. This inventory was included in J&Ms inventory count and inventory listing.
b On December & M sold scarves Item # to a customer with a sale price of $ and cost of $ FOB shipping.
The order was shipped on December J&M has not included this inventory.
c Red Blazers Item ## were purchased and shipped from International Co on December for $ FOB shipping.
The shipment arrived January and the appropriate party paid for the shipping charges of $ Additional costs were $
for import duties and $ for insurance during shipment. & has not included this inventory.
d At yearend, J&M is holding $ of black pants Item # on consignment for designer Duke Co This inventory was included
in J&Ms inventory count and inventory listing.
e On December J&M shipped white shirts Item # FOB destination costing $ to a customer. The customer was
charged $ and the customer received the goods on January J&M has not included this inventory.
Required:
In situations a to e determine whether inventory should be included or excluded in inventory at December If the
inventory should be included, determine the correct inventory cost. Do not leave any empty spaces; input a wherever it is
required.
Determine the correct ending inventory value at December Starting with the unadjusted inventory value of $ add
or subtract any errors based on your analysis in Part Assume all items that are not shown in the inventory listing are recorded
correctly.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started