Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The Bonita Hat Shop Limited counted the entire inventory In its store on August 31 and arrived at a total inventory cost of $87.500. The
The Bonita Hat Shop Limited counted the entire inventory In its store on August 31 and arrived at a total inventory cost of $87.500. The count included $8,200 of inventory held on consignment for a local designer: $520 of inventory that was being held for customers who were deciding if they actually wanted to purchase the merchandise; and $900 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 $4,800. It had been shipped on August 29, terms FOB destination. The second shipment cost $4,990. plus freight charges of $240. It had been shipped on August 28, terms FOB shipping point. Neither of these shipments was included in the August 31 count. Calculate the correct cost of the inventory on August 31. Inventory cost $ 85430
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started