Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On December 31, 2023, Jen & Mink Clothing (J&M) performed the inventory count and determined the year-end ending inventory value to be $84500. It is

image text in transcribed
image text in transcribed
On December 31, 2023, Jen \& Mink Clothing (J\&M) performed the inventory count and determined the year-end ending inventory value to be $84500. It is now January 8,2024, and you have been asked to double-check the year-end 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 3, 2024, J\&M received a shipment of 118 blue jackets, for $4,484 (tem A7649). The inventory was purchased December 23, 2023, FOB destination from Global Threads. This inventory was included in J\&M's inventory count and inventory listing. b. On December 29,2023 , J\&M sold scarves (item $5566 ) to a customer with a sale price of $880 and cost of $590, FOB shipping. The order was shipped on December 30, 2023. J\&M has not included this inventory. c. Red Blazers (item 76193 ) were purchased and shipped from international Co. on December 30,2023, for $3,480, FOB shipping. The shipment arrived January 5, 2024, and the appropriate party paid for the shipping charges of $500. Additional costs were $310 for import duties and $96 for insurance ducing shipment. JSM has not included this inventory. d. At year-end, J\&M is holding \$11,088 of blaes pants (item d10824) on consignment for designer Duke Co. This inventory was included in J\&M's inventory count and inventory listing e. On December 31, 2023, J\&M shipped white shirts (ttem 44291 ). FOB destination costing $1,270 to a customer. The customer was charged $1,400 and the customer received the goods on January 3, 2024. J\&M has not included this inventory. Required: 1. In situations (a) to (e) determine whether inventory should be included or excluded in inventory at December 31,2023 . If the inventary should be inctuded, determine the correct inventory cost. (Do not leave any empty spaces; input a 0 wherever it is required.) inventory should be included, determine the correct inventory cost. (Do not leave any empty spaces; input a 0 wherever it is required.) 2. Determine the correct ending inventory value at December 31, 2023. Starting with the unadjusted inventory value of $84,500, add or subtract any errors based on your analysis in Part 1. Assume all items that are not shown in the inventory listing are recorded

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: 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

Trade Based Money Laundering

Authors: John A. Cassara

1st Edition

1119078954, 9781119078951

More Books

Students also viewed these Accounting questions

Question

=+f) Let P(A) = I (wo) for A Fo, and assume (wg) E o($).

Answered: 1 week ago