Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(TCO G) In your audit of Garza Company, you find that a physical inventory on December 31, 2010, showed merchandise with a cost $441,000 was

(TCO G) In your audit of Garza Company, you find that a physical inventory on December 31, 2010, showed merchandise with a cost $441,000 was on hand at that date.You also discover the following items were all excluded from the inventory count.

Merchandise of $61,000, which is held by Garza on consignment.The consignee is the Bontemps Company.

Merchandise costing $33,000, which was shipped by Garza f.o.b. destination to a customer on December 31, 2010.The customer was expected to receive the merchandise on January 6, 2011.

Merchandise costing $46,000, which was shipped by Garza f.o.b. shipping point to a customer on December 29, 2010. The customer was scheduled to receive the merchandise on January 2, 2011.

Merchandise costing $73,000 shipped by a vendor f.o.b. destination on December 30, 2010, and received by Garza on January 4, 2011.

Merchandise costing $51,000 shipped by a vendor f.o.b. shipping point on December 31, 2010, and received by Garza on January 5, 2011.

Based on the above information, calculate the amount that should appear on Garzas balance sheet at December 31, 2010, for inventory.

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

Payroll Accounting

Authors: Bernard J Bieg, Judith A Toland

24th Edition

1285437063, 9781285437064

More Books

Students also viewed these Accounting questions

Question

Explain how to compute net realizable value.

Answered: 1 week ago