Stansbury Company determined its December 31, 2014 inventory to be S1,000,000 based on a physicni count priced at cost. It then determined the following additional information: Merchandise costing $90,000 was shipped FOB shipping point from a vendor on December 30, 2014. This merchandise was received and recorded on January 5, 2015 Goods conting $120,000 were staged on the shipping dock and excluded from inventory although shipment was not made until January 4, 2015. The goods were billed to the customer FOB shipping point on December 30, 2014 20 What is Stansbury's ending inventory for its December 31, 2014 balance sheet? a $1,000,000 b. $1.090,000 $1,120,000 di $1,210,000 Exhibit 1 Edwards Co. purchased raw materials with a cost of 595,000 on March 2, 2014. Credit terms of 3/20, n/60 applied. ir Edwards pays for the purchase on March 18, 2014, calculate the amount recorded for inventory on March 2, 2014, using the method given Refer to Exhibit 1. Edwards uses a perpetual inventory system and the gross price method. $42,000 b. $76,000 c. $92,150 d. 595,000 2 2 Concerning purchase discounts, which one of the following statements is true? a. Purchase discounts taken should be deducted from the acquisition cost of the inventory. b. The net price method results in recording accounts payable at the maximum value of the fiability that the company may be required to pay out. c. Purchase discounts lost should be included in the cost of inventory d. An advantage of the gross price method is that it isolates purchase discounts lost and thus highlights inefficiencies 23 On June 1, Dollar Hardware, Ite. had an inventory of 300 gas grills conting $100 cach. Purchases and sales during June are as follows: Date Purchases June 3 100 2 S125 each June 10 50 @ $110 cach June 17 150 l $130 cach June 28 50 @ S120 each What is the cost of Dollar's inventory on June 30 using the FIFO method? a $15,000 b. $16,000 $16,500 d. $18,000