Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Practice Exercise 6-1 The Martinez Hat Shop Limited counted the entire inventory in its store on July 31 and arrived at a total inventory cost

image text in transcribed

Practice Exercise 6-1 The Martinez Hat Shop Limited counted the entire inventory in its store on July 31 and arrived at a total inventory cost of $87,300. The count included $7,300 of inventory held on consignment for a local designer; $500 of inventory that was being held for customers who were deciding if they actually wanted to purchase the merchandise; and $1,000 of inventory that had been sold to customers but was being held for alterations. There were two shipments of inventory received on September 1. The first shipment cost $4,900. It had been shipped on July 30, terms FOB destination. The second shipment cost $5,080, plus freight charges of $230. It had been shipped on July 27, terms FOB shipping point. Neither of these shipments was included in the July 31 count. Calculate the correct cost of the inventory on July 31. Inventory cost

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

Auditing Human Resources

Authors: Kelli W. Vito

2nd Edition

0894136941, 978-0894136948

More Books

Students also viewed these Accounting questions

Question

2. What are your challenges in the creative process?

Answered: 1 week ago