Question
The Kwok Companys inventory balance on December 31, 2016, was $265,000 (based on a 12/31/16 physical count) before considering the following transactions: 1.Goods shipped to
The Kwok Companys inventory balance on December 31, 2016, was $265,000 (based on a 12/31/16 physical count) before considering the following transactions:
| 1.Goods shipped to Kwok f.o.b. destination on December 20, 2016, were received on January 4, 2017. The invoice cost was $50,000. | |
| 2. | Goods shipped to Kwok f.o.b. shipping point on December 28, 2016, were received on January 5, 2017. The invoice cost was $37,000. |
| 3. | Goods shipped from Kwok to a customer f.o.b. destination on December 27, 2016, were received by the customer on January 3, 2017. The sales price was $60,000 and the merchandise cost $42,000. |
| 4. | Goods shipped from Kwok to a customer f.o.b. destination on December 26, 2016, were received by the customer on December 30, 2016. The sales price was $40,000 and the merchandise cost $33,000. |
| 5. | Goods shipped from Kwok to a customer f.o.b. shipping point on December 28, 2016, were received by the customer on January 4, 2017. The sales price was $45,000 and the merchandise cost $32,000. |
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