Synzer Company has incurred the following costs in connection with its purchase price of inventory:

Purchase price based on vendor's invoices1,250,000

Trade Discounts on purchases already deducted from vendor's

Invoice125,000

Salaries of accounting department150,000

Brokerage Commission paid to agents for arranging imports 50,000

Sales Commission paid to sales agents75,000

After-sales warranty costs 62,500

Import duties100,000

Freight and insurances on purchases250,000

Other handling costs relating to imports25,000

What is the total cost of the purchase?

SOLUTION:

Xylem Company purchased inventory for cash. The details thereof were as follows:

Invoice price (no VAT is charged on these goods)850,000

Rebate offered to the entity by the supplier10,000

Assuming the terms of the agreement made it clear that the rebate was a reduction to the invoice price of the inventory, what is the total amount of inventoriable cost?

SOLUTION:

O Company's inventory at December 31, 2020 was 360,000 based on a physical count of goods priced at cost and before any necessary year-end adjustment relating to the following:

Goods shipped FOB destination on December 28, 2020 from a vendor to Oust The Turtle was received on January 1, 2021. The invoice cost was 48,000.

Included in the physical count were goods billed to a customer FOB Shipping Point on June 30, 2020. These goods costing 18,000 were picked up by the carrier on January 9, 2021.

What amount should Oust The Turtle report as inventory in its December 31, 2020 statement of financial position?

SOLUTION:

Jaillbint Company provided the following data about the inventory for the month of January:

UnitsUnit CostTotal Cost

January 1Beginning16,000 1402,240,000

5Purchase4,000150600,000

10Sales15,000

15Purchase20,0001603,200,000

16Purchase return1,000160160,000

25Sales8,000

26Sales return4,000

31Purchase30,0001504,500,000

What is the moving average cost of the inventory on January 31?

SOLUTION: