Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The merchandise inventory in Wildhorse Co. was counted after the close of business on December 31, 2021, the companys year end. It was determined that

The merchandise inventory in Wildhorse Co. was counted after the close of business on December 31, 2021, the companys year end. It was determined that the total cost of this inventory was $55,300. Wildhorse wants to know if this is the correct amount that should be reported on the companys December 31, 2021, balance sheet or if an adjustment needs to be made for any of the following items:

(a) The count included items costing $1,200 that had been sold but are being held for alterations. The customers have paid in full for these items.
(b) Wildhorse Co. has $4,350 of merchandise held on consignment for a local designer. These items were included in the inventory count.
(c) A shipment of inventory costing $2,850 was received on January 2, 2022. It had been shipped by the seller on December 30, FOB shipping point. Freight charges are $340. These items were not included in the inventory count.
(d) A second shipment of inventory costing $4,560 was received on January 3, 2022. It had been shipped by the seller on December 31, FOB destination. Freight charges are $400. These items were also not included in the inventory count.

Determine the correct amount of Wildhorse Co.s merchandise inventory at December 31, 2021. (Do not leave any answer field blank. Enter 0 for amounts. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

The correct cost of inventory is:

Total cost per inventory count

$enter a dollar amount

(a) Inventory held for alterations

enter a dollar amount

(b) Inventory held on consignment

enter a dollar amount

(c) Goods shipped FOB shipping point prior to Dec. 31

enter a dollar amount

Freight on inventory purchase

enter a dollar amount

(d) Goods shipped FOB destination prior to Dec. 31

enter a dollar amount

Freight on inventory purchase

enter a dollar amount

Correct inventory cost at December 31

$enter a total amount

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

Students also viewed these Accounting questions

Question

What are the objectives of job evaluation ?

Answered: 1 week ago

Question

Write a note on job design.

Answered: 1 week ago

Question

Compute the derivative of f(x)cos(-4/5x)

Answered: 1 week ago

Question

Discuss the process involved in selection.

Answered: 1 week ago